UK department store darling John Lewis revealed a softening of growth in its full year update, with like-for-like sales remaining positive but increasing by less than half the rate they did last year.

Furthermore today’s results came with an unexpected drop in profit before tax for the partnership as a whole, (down 10.1 per cent) although this is directly attributable to higher pension charges and lower property profits, as opposed to underlying unstable trading. Excluding adverse property profits John Lewis operating profit rose marginally by £1.7 million (0.7 per cent) as central and restructuring costs dampened growth.

That said, John Lewis continues to make impressive gains in a number of sectors via its focus on quality, value and product innovation. Its share position increased in a number of non-food categories – Fashion, Home & Electricals and Home Technology – while online sales jumped up 17 per cent on the year.

Following on from John Lewis’ Christmas update regarding a fundamental shift in trading patterns towards an increasing emphasis on e-commerce, store sales dropped by 1 per cent over the course of the year. At face value this decrease may arouse concerns but Verdict Retail’s research shows that even if a purchase is made online the store is still a crucial part of the customer journey as they often want to see a product in person before going back home and making the decision to buy. This is echoed by the John Lewis partnership’s claim that online sales increase once a new store is opened in that catchment.

Despite the muted results John Lewis continues to push ahead for the future, and rightly so. With its new Birmingham store opening last year it has demonstrated an ability to respond to the changing consumer demands of the store environment, introducing leisure facilities, such as a beauty spa, and focusing on inspiration. If successful these changes are likely to be rolled out to its new stores planned to open later in 2016 in Leeds and Chelmsford.

As further proof of the continuing British love affair with John Lewis its ‘My John Lewis’ program members also increased by 32 per cent over the year to reach 1.8 million – evidence that the retailer will continue to prosper.

• Sophie McCarthy is an analyst with Verdict Retail.