The John Lewis Partnership, operator of 36 department stores and more than 300 Waitrose supermarkets, reported pre-tax losses of £124m for the six-month period ending 1 August, a significant deterioration from £88m losses in the corresponding period in 2025. The company attributed the widened losses to ongoing transformation investments, a more challenging retail environment, and elevated operational costs including increased national insurance contributions and expenses related to managing operations during summer heatwaves.
The retailer is executing a substantial restructuring initiative that has included the closure of 16 department stores and at least 20 Waitrose locations, alongside significant workforce reductions. Performance varied across divisions, with Waitrose supermarkets generating sales growth of 4% to £4.3bn, while the department store division experienced a 2% sales decline to £2bn. Overall group half-year sales increased 2% to £6.3bn.
Recent leadership changes include the departure of Peter Ruis, head of department stores, who stepped down after less than three years. Will Kernan, former chief executive of River Island, has assumed the role. Earlier this year in March, the company distributed bonuses totaling £35m to its 69,000 staff members—equivalent to approximately one week’s additional pay—marking the first bonus payment in four years following a 6% underlying profit increase.
The company’s recent performance reflects broader challenges in the retail sector, particularly affecting discretionary spending. Consumer activity weakened this summer due to heatwaves that discouraged high street visits and shifts toward online shopping, while cost-of-living pressures reduced demand for higher-priced items such as furniture. Management indicated the business is positioned favorably for the remainder of the year, particularly during the critical Christmas trading period when the company typically generates substantial annual profits.
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