Underlying losses at John Lewis Partnership have more than doubled as the retail group invested in an ongoing turnaround and battled a more challenging economic backdrop.
Partnership sales for 26 weeks to 1 August 2026 increased 2% to £6.3bn, but the increased cost of doing business, including national insurance hikes and the expense of managing operations through successive heatwaves, led to a loss before tax and exceptional items of £89m, compared with £34m in the same period a year ago.
JLP said good sales momentum in Waitrose partially offset weaker customer demand for larger discretionary purchases at John Lewis stores.
Waitrose boosted sales in the first half by 4% to £4.3bn but adjusted operating profits slipped by £7m year on year to £103m as the upscale supermarket invested in its loyalty scheme and in lowering prices. The chain also dealt with the extra cost of keeping its chillers and freezers running effectively through this summer’s record temperatures.
Sales at John Lewis fell 2% to £2bn as the department store, which is in the earlier stages of a transformation compared with Waitrose, invested in promotions and clearance sales in response to the subdued general merchandise market. The division’s adjusted operating loss increased by £30m year on year to £83m.
JLP was hit by exceptional costs of £35m for the half, down from £54m last year, mostly relating to restructuring the head office and a technology modernisation. It took group pre-tax losses to £124m for the half, up from £88m in the same period last year.
JLP chairman 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. Partnership sales grew, customer satisfaction remains strong and the stores we’ve transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis.
“We are managing the business with discipline and have chosen to keep investing in our customers, partners and the long-term strength of our brands. While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength. As in every year, our profit is earned in the second half, so our focus now is on serving customers brilliantly through our peak trading period. I’m grateful to all our partners for everything they continue to deliver.”
JLP reported a 15% increase in sales of the Waitrose No 1 own label range in the half, while online sales at the supermarket were up 11%.
The group modernised 15 Waitrose stores in the half, with completed refurbishments showing improved sales and customer satisfaction scores.
JLP said there was “no doubt” that the wider economic and geopolitical landscape had weighed on customers during the first half and the group remained cautious in its outlook for the second half.
Full-year profits will be determined by how the group performs during its peak Christmas trading period.
“We are set up well for the second half,” the group added. “We remain focused on doing the right things for our customers and continuing to invest through the cycle. With peak ahead, we are excited about our plans across John Lewis and Waitrose and look forward to making the festive season special for all our customers.”
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