John Lewis losses widen to £124m as shopper confidence dips

The John Lewis Partnership, which runs 36 John Lewis department stores and more than 300 Waitrose supermarkets, reported a pre‑tax loss of £124 million for the six months to 1 August, a rise of over 40 percent from the £88 million loss recorded in the same period a year earlier. Chair Jason Tarry attributed the widening deficit to the partnership’s ongoing “transformation” investments, a tougher trading environment and escalating operating costs, including higher national‑insurance contributions and the expense of managing stores through unusually hot weather. The loss comes as the group continues its turnaround plan, which has already seen the closure of 16 department stores and at least 20 Waitrose sites, alongside thousands of job cuts.

Despite the overall downturn, the supermarket arm performed better than the department‑store side, with Waitrose sales climbing 4 percent to £4.3 billion, while John Lewis store sales fell 2 percent to £2 billion, leaving total half‑year revenue up 2 percent to £6.3 billion. Earlier in the year the partnership paid a 2 percent salary bonus to its 69 000 staff – the first such payout in four years – after a 6 percent rise in underlying profit, distributing £35 million in extra pay. However, the summer’s heatwaves discouraged high‑street visits, pushing shoppers toward online specialists, and the broader cost‑of‑living squeeze reduced demand for big‑ticket items such as sofas and beds.

The partnership’s leadership also changed, with Peter Ruis stepping down as head of the department‑store division after less than three years and being succeeded by former River Island chief Will Kernan. While the first‑half results are disappointing, JLP says it is “set up well for the second half,” anticipating a stronger Christmas trading period that traditionally generates the bulk of its annual profit. The widening loss underscores the challenges facing the remaining national department‑store chains in the UK, following the collapse of rivals like Debenhams and Beales, and highlights the sector’s vulnerability to shifting consumer habits and economic pressures.

⚡ Effects Interpreter