Key facts
- John Lewis Partnership's pre-tax loss widened to £124 million in the six months to August 1, from £88 million a year earlier.
- Increased operating costs, including national insurance contributions and managing heatwave operations, contributed to the loss.
- Waitrose sales grew 4% to £4.3 billion, while John Lewis department store sales fell 2% to £2 billion.
- The company is implementing a turnaround plan involving store closures and job cuts.
- John Lewis paid its 69,000 workers a 2% bonus in March, the first in four years.
The John Lewis Partnership, owner of the John Lewis department stores and Waitrose supermarkets, reported a pre-tax loss of £124 million for the first half of its fiscal year ending August 1, a significant increase from the £88 million loss recorded in the same period of 2025. The company attributed the widened loss to higher operating costs, including increased national insurance contributions and expenses related to managing business operations during heatwaves, as well as a challenging trading environment and reduced shopper confidence.
In response to these pressures, the group is undertaking a turnaround plan that has already seen the closure of 16 department stores and at least 20 Waitrose outlets, alongside thousands of job cuts. The financial results follow the recent departure of Peter Ruis, head of the department store arm, who was replaced by Will Kernan. Despite the overall loss, Waitrose sales saw a 4% increase to £4.3 billion, while sales at John Lewis department stores declined by 2% to £2 billion.
Earlier in the year, in March, the partnership had expressed confidence by paying its 69,000 employees, known as partners, a 2% bonus – the first in four years – from a £35 million bonus pot. However, weak consumer spending over the summer, exacerbated by heatwaves deterring high-street shopping and the rising cost of living impacting purchases of larger items, has since affected performance.