The John Lewis Partnership has saved millions of pounds with a long-term strategy that included the roll-out of new systems supporting its operational activities.

The move is part of a wider strategy to fend off any detrimental effects stemming from the current market volatility.

"We focused on improving customer service and invested in systems and the supply chain for the long term. Costs were contained and savings of £25m were achieved against plan," said John Lewis chairman Charlie Mayfield.

"In difficult trading conditions the Partnership is determined to do the right thing to build our business for the future."

Sales at the retail group reached £3.27bn for the first half of this year, up 3.6 per cent on 2007. But operating profit fell by 22 per cent to £125m and profit before tax was down 27 per cent at £107m.

Earlier this year, John Lewis reported positive results for 2007 but its Ocado online grocery business posted trading losses of £7.1m, with nearly £1m brought forward from last year.