The John Lewis Partnership, which operates 36 department stores and over 300 Waitrose supermarkets, reported that its pre-tax losses for the first half of the year reached £124m, representing a significant increase from £88m in the corresponding period in 2025. The retailer attributed the widening losses to a combination of market headwinds and operational challenges that emerged during the period. Key factors contributing to the financial decline included reduced consumer spending, particularly in discretionary home goods categories. Customers demonstrated increased caution with their purchasing decisions, influenced by elevated interest rates, growing cost-of-living pressures, and geopolitical uncertainties. Additionally, the company faced higher national insurance contributions that added to its expense base. Weather-related disruptions also impacted performance, with the company experiencing challenges stemming from summer heatwaves that affected refrigeration and freezing operations across its supermarket division. Despite these pressures, Waitrose showed relative resilience with sales growth of 4%, while John Lewis department store sales declined 2%. The partnership achieved overall half-year sales growth of 2%, reaching £6.3bn. The company is pursuing several strategic initiatives to stabilize its financial position. These include the development of an integrated loyalty program combining separate John Lewis and Waitrose offerings, ongoing restructuring efforts, and investments in more robust refrigeration infrastructure. Leadership also renewed calls for government support, specifically requesting reforms to business rates ahead of the chancellor’s budget announcement. Regarding employee compensation, the partnership granted its 69,000 workers a 2% salary bonus in March, the first such payment in four years. However, uncertainty remains about whether similar bonuses will be provided for the current financial year, though company leadership expressed confidence in returning to profitability. The company noted that the second half of the financial year, which includes the important Christmas trading period, typically generates the majority of annual profits.
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