Extreme market fluctuations hit pension scheme in Q4 2022

  • John Lewis Partnership’s pension assets dropped by £2.8bn last year
  • Market volatility in September and October impacted the pension scheme
  • Hedge reduced from 100% to 75% of assets
  • Trustee aims to increase hedge back to 100% within a few months
  • Full-year losses increased to £234m, staff bonus axed for second time
  • Inflation impacted business costs by £179m
  • Sales at John Lewis up, but Waitrose sales down 3%
  • Customer numbers grew but spent less

John Lewis Partnership’s pension assets plunged by £2.8bn last year due to extreme market volatility, particularly in September and October, following the government’s mini-budget and inflation impact. The group’s hedge was reduced from 100% to 75% of assets but is expected to return to 100% soon. Full-year losses increased to £234m, with a second staff bonus cut and potential job losses. Inflation added £179m in costs, while sales at John Lewis rose but Waitrose sales fell 3%. Customer numbers grew to 20 million, but they spent less.

Factuality Level: 9
Factuality Justification: The article provides accurate information about John Lewis Partnership’s pension assets market value drop, explains the reasons behind it, and includes relevant financial data. It also discusses the company’s losses, staff bonus cut, and sales performance without any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about the market value decline of John Lewis Partnership’s pension assets and its impact on the company’s financial results. It also mentions the reasons behind the decline (market volatility) and the steps taken to address it. The article stays on topic and supports its claims with specific numbers and details, making it informative without being overly noisy or irrelevant.
Financial Relevance: Yes
Financial Markets Impacted: John Lewis Partnership’s pension assets
Financial Rating Justification: The article discusses the decline in the market value of John Lewis Partnership’s pension assets and its impact on the company’s financial results, as well as mentioning the influence of inflation on costs and sales.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The extreme market volatility in September and October, resulting in a £2.8bn plunge in the pension assets’ value and significant impact on the company’s financial results.

Reported publicly: www.retailsector.co.uk