Losses at the owner of John Lewis and Waitrose widened by more than 40% in the first half of the year as it struggled with higher costs and shoppers feeling less confident about their money.
The John Lewis Partnership, which operates 36 department stores and more than 300 Waitrose supermarkets, said its pre-tax loss for the six months to 1 August climbed to £124m, compared with £88m in the same period in 2025.
Jason Tarry, the chair of JLP, said the first half of the year had been a “tougher market than we had planned for”.
“Customers have been more cautious about spending, particularly when they replace the bigger-ticket things in their homes,” he said, citing higher interest rates, the rising cost of living and uncertainty triggered by wars around the world.
Higher national insurance contributions and a series of heatwaves over the summer also drove up costs, JLP said.
Tom Denyard, the boss of Waitrose, said the heat had triggered “some challenges with refrigeration and freezing”, but that the company was investing in more resilient equipment.
Waitrose still outperformed John Lewis, with sales across the supermarket arm up 4% while those at the department store chain fell 2%. Overall half-year sales rose 2% to £6.3bn.
The company added that it was “starting to build” a joined-up loyalty offering across the partnership. It currently offers separate John Lewis and Waitrose loyalty cards, which include free “treat” products and personalised rewards.
The partnership, which is employee-owned, is in the midst of a turnaround plan, after having closed 16 department stores and at least 20 Waitrose outlets since the pandemic and is cutting thousands of staff jobs.
Tarry called on the chancellor, John Healey, to reduce the cost of doing business in the UK in his inaugural budget in October.
“We want the government to deliver against their manifesto, which is to reform business rates,” he said. “It is the biggest business tax that we face, and in some locations it is bigger than our rent bill.
“Anything that the government can do to help us employ more people and be able to drive more growth would be very helpful.”
JLP’s drop in profit comes after Peter Ruis, head of the department store arm, said last month he would step down after less than three years in the role. He has been replaced by Will Kernan, a former boss of the River Island fashion chain.
In March the company felt confident enough to pay its 69,000 workers, whom it calls partners, a bonus – of 2% of salary – for the first time in four years, following a 6% rise in its underlying profit. Staff shared a pot of £35m, worth about one week’s extra pay each.
The company said it was still too early to say whether staff would be paid a bonus for this financial year, although Tarry said he was “confident we will be able to make a profit”.
The retailer typically makes the bulk of its profit in the second half of its year, which includes the peak Christmas trading period.
But Robyn Duffy, an analyst at the consultancy RSM UK, said John Lewis looked vulnerable heading into the second half. “The retailer is particularly exposed to big-ticket, deferrable categories like home, furniture and electricals – exactly where these consumers are choosing to cut back or delay spending,” she said.
John Lewis is one of the few remaining national department store chains, following the closure of Debenhams and Beales. This summer Harvey Nichols was bought out of administration by the owner of Sports Direct, Mike Ashley, who had said the Knightsbridge store was in a “death spiral”.
