John Lewis Partnership losses more than double amid tougher trading

John Lewis Partnership on Thursday said half-year losses more than doubled, amid tougher trading and said it remained cautious over the final six months.

The employee-owned retailer, which owns the John Lewis department store chain and Waitrose supermarkets, reported loss before tax and exceptional items of £89 million for the six months that ended August 1, widend from £34 million a year earlier.

At the bottom line, pretax losses widened to £124 million from £88 million a year ago, as John Lewis Partnership said costs also weighed on results, including moves to restructure its head office.

John Lewis Partnership said the head office reorganisation was focused on its central teams and had led to some job losses.

While it did not disclose numbers, it said the impact on jobs was less than 1% of its total workforce.

Sales in its department store chain fell 2% to £2.0 billion, as it said consumers were holding back on discretionary spending, while sales across the Waitrose supermarket arm rose 4% to £4.3 billion.

Overall, half-year sales rose 2% to £6.3 billion.

Chair Jason Tarry said: "Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business."

Tarry told the Press Association that UK consumers are cutting back on big purchases. He said: "Consumers are holding back on spending on bigger ticket items. They're cautious at the moment given what's going on in the world."

While the second half of the year including Christmas is traditionally much stronger for the firm, John Lewis Partnership said it is cautious.

"There is no doubt the wider economic and geopolitical landscape has weighed on our customers during the first half and we remain cautious in our outlook for the second half.

"As in every year, the majority of our profit is earned in the second half, and the full-year outcome will be determined by peak trading."

Tarry said there will be further cost pressures over the remainder of the year due to the Iran war and a rising workforce bill, pushed up by National Insurance tax increases and wage rises.

But he told PA the group was operating in a "highly competitive market" and was "committed to making sure we do everything we can" to keep prices down for shoppers.

The John Lewis sales decline marks a reversal of trading fortunes for the group after it saw sales rise by 3% in financial 2026.

Underlying operating losses widened to £83 million in the department store arm, from £53 million a year ago, with the firm saying it "invested more in promotions in response to the subdued market".

Will Kernan, former non-executive director at John Lewis, has this week taken over from Peter Ruis at the helm of the department store business.

The new managing director's career has included stints as boss of high street retailers River Island and White Company.

By Holly Williams, Press Association Business Editor

source: PA

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