Loss widens at John Lewis Partnership after budget tax increases

John Lewis Partnership has posted an £88 million loss for the past half-year after being hit by increases to national insurance contributions and packaging taxes.

However, the employee-owned group, which runs the John Lewis department store chain and Waitrose grocery business, said it is still ‘well positioned’ to deliver profit growth for the full year.

It said the pretax loss for the 26 weeks to July 26 was £87 million, widening from £29 million a year prior.

JLP said this included a £29 million impact from the extended producer responsibility packaging and higher national insurance payments, after they were introduced in April following last year’s autumn UK budget.

The group also said its profitability was dragged down by its significant investment plan.

Jason Tarry, chair of John Lewis Partnership, said: ‘Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets.

‘We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.

‘The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year.

‘While we are reporting a loss in the first half, we’re well positioned to deliver full-year profit growth, which we’ll continue to invest in our customers and partners.’

source: PA

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