The short version
- Pre-tax losses for the John Lewis Partnership increased by more than forty percent to £124 million during the six months ending August 1, driven by rising business expenses and reduced shopper confidence.
- While the Waitrose supermarket chain saw a four percent rise in sales, the department store division experienced a two percent decline, reflecting broader difficulties in selling large-ticket household items.
- The company continues its extensive restructuring plan, which includes closing numerous locations and reducing staff numbers, even as it prepares for the critical holiday trading season.
The John Lewis Partnership has reported a significant deterioration in its financial performance for the first half of the year, with pre-tax losses expanding to £124 million. This figure represents an increase of more than forty percent compared to the £88 million deficit recorded during the same period in 2025. The retailer attributes this widening gap to a combination of elevated operational costs and a deteriorating trading environment that has dampened consumer confidence.
Jason Tarry, the chair of the partnership, indicated that the financial strain reflects the company’s ongoing commitment to its transformation strategy. He noted that the group is absorbing higher expenses associated with doing business in the current economic climate. These increased costs include greater national insurance contributions and additional expenditures required to manage operations during recent periods of extreme heat.
The retailer is currently executing a comprehensive turnaround plan designed to streamline its operations. This restructuring effort has already resulted in the closure of sixteen department stores and at least twenty Waitrose supermarkets. Thousands of staff positions have been eliminated as part of this broader initiative to adapt to changing market conditions and reduce overheads.
Performance across the two main divisions has diverged significantly. The Waitrose supermarket arm demonstrated resilience, with sales rising by four percent to £4.3 billion. In contrast, the department store chain saw its sales fall by two percent, dropping to £2 billion. Despite this disparity in divisional performance, overall half-year sales for the group increased by two percent, reaching a total of £6.3 billion.
The decline in profitability follows recent leadership changes within the organization. Peter Ruis, who led the department store arm for less than three years, announced his departure last month. He has been succeeded by Will Kernan, formerly the head of the River Island fashion chain. This transition occurs as the company navigates a period of intense pressure on its traditional retail model.
Consumer behavior has shifted notably during the summer months. Successive heatwaves discouraged shoppers from visiting physical high-street locations, leading many to turn to online specialists instead. Additionally, the persistent cost-of-living crisis has curtailed spending on discretionary big-ticket items such as furniture and bedding, which are staples of the department store inventory.
Despite the current losses, the partnership had previously shown signs of underlying strength. In March, the company distributed a bonus equivalent to two percent of salary to its 69,000 employees, known as partners. This was the first such payout in four years and followed a six percent rise in underlying profit at that time. The total bonus pot amounted to £35 million, providing staff with approximately one week’s additional pay.
The John Lewis Partnership remains one of the few major national department store chains still operating in the United Kingdom, following the collapse of competitors like Debenhams and Beales. The broader retail sector has faced significant turbulence, highlighted recently by Mike Ashley’s acquisition of Harvey Nichols out of administration. Ashley had previously described the luxury retailer as being in a death spiral, underscoring the fragility of traditional brick-and-mortar retail.
Looking ahead, the company maintains that it is well-positioned for the second half of the year. This period includes the crucial Christmas trading season, which historically generates the majority of the group’s annual profit. Management hopes that the structural changes implemented during the first half will yield better results as consumer spending patterns stabilize during the festive months.
The financial results highlight the ongoing challenges facing traditional retailers in an era of digital competition and economic uncertainty. While the supermarket division provides a buffer, the department store business continues to struggle with relevance and footfall. The success of the turnaround plan will likely depend on how effectively the new leadership can adapt to these persistent headwinds.
Sources behind this briefing
Go to the original reporting
- The Guardian World↗John Lewis losses widen to £124m as shopper confidence dips
