Inflation hit the John Lewis Partnership “like a hurricane”, says chair Sharon White, with “strong sales” at John Lewis offset by declining sales at Waitrose.
Prices will be reduced by 14% on average across everyday basics such as carrots, tea and sausages.
Nathan Ansell will join Waitrose in January, replacing Martin George who announced his departure in July.
The supermarket is aiming to do something “different from the norm” with this year’s Christmas campaign.
The grocer hopes by adopting a “more confident” tone of voice it can dial up its appeal among consumers looking for quality products amid the cost of living crunch.
Waitrose is due to unveil its new brand positioning within the next couple of weeks, which the supermarket’s executive director says will be more “confident and bold”.
Waitrose is in the process of recruiting a new customer director to replace George, as he departs to pursue non-executive roles.
Waitrose sent a legal letter to Asda last month after it unveiled plans for a similarly named budget range – Just Essentials by Asda.
Asda is set to invest £45m in the new budget range, as it seeks to regain its position as the UK’s second largest supermarket by market share.
The firm is promising further “significant investment” this year in areas including digital services, shop refurbishment, value and revenue diversification.
John Lewis and Waitrose have had separate customer directors since 2020, but are now introducing a pan-partnership customer director to develop a joint strategy, improve their customer capabilities, and launch a new loyalty proposition.
Waitrose showcases its festive favourites in a humorous campaign starring actress Ashley Jensen, as it parts ways with John Lewis at Christmas to ensure each brand has room to shine.
Waitrose customer director Martin George believes all generations of marketers share a number of key traits, though millennials are more “purposeful” with their action and work.
The John Lewis Partnership has reported strong results from its scheme to bring the John Lewis and Waitrose brands closer together, as well as from the launch of its value Anyday range.
The Covid crisis has flattened corporate hierarchies and bridged the generation gap between marketers with decades’ worth of experience and those just starting out, according to customer director Martin George.