The John Lewis Partnership, which oversees 36 department stores and over 300 Waitrose supermarkets, reported a pre-tax loss of £124 million for the six months ending August 1. This figure represents a significant increase from the £88 million loss recorded during the same period in 2025, marking a rise of more than 40%.
Jason Tarry, chair of the partnership, characterized the first half of the year as a “tougher market than we had planned for.” He noted that customers are exhibiting increased caution regarding their spending, particularly when considering the replacement of high-value items for their homes. Tarry attributed this trend to a combination of rising living costs, elevated interest rates, and global geopolitical uncertainty.
Operational costs also weighed heavily on the business, driven by higher national insurance contributions and a series of summer heatwaves. Tom Denyard, managing director of Waitrose, explained that the extreme temperatures caused refrigeration and freezing challenges, prompting the company to invest in more resilient equipment.
Despite the broader difficulties, Waitrose outperformed the department store division, recording a 4% increase in sales. Conversely, sales at John Lewis department stores dipped by 2%. Overall, the partnership saw total half-year sales rise by 2% to £6.3 billion. The company is currently working to integrate its loyalty programs, which currently operate separately for the two brands.
The employee-owned partnership remains in the midst of a significant turnaround strategy, which has included the closure of 16 department stores and at least 20 Waitrose outlets since the pandemic, alongside ongoing staff reductions. Tarry has urged Chancellor John Healey to prioritize business rate reform in the upcoming October budget, describing the levy as a major tax burden that, in some areas, exceeds the cost of rent.
Regarding staff bonuses, the company stated it is too early to determine payouts for the current financial year, though Tarry expressed confidence in achieving profitability. Earlier this year, the partnership paid its 69,000 workers a 2% bonus—totaling £35 million—following a 6% rise in underlying profit, marking the first such payment in four years.
Management changes are also underway, with Will Kernan, formerly of River Island, replacing Peter Ruis as the head of the department store division. Analysts remain cautious about the company’s outlook; Robyn Duffy of RSM UK noted that the retailer is highly exposed to “big-ticket, deferrable categories” like furniture and electricals, where consumers are currently tightening their budgets.
The broader retail landscape remains volatile, with John Lewis standing as one of the few remaining national department store chains. Recent industry shifts include the collapse of Harvey Nichols, which was purchased out of administration by Sports Direct owner Mike Ashley after he described the store as being in a “death spiral.” The report also notes that with sales across the supermarket arm up 4% while those at the department store chain fell 2%, waitrose still outperformed John Lewis. The report also notes that the company added that it was “starting to build” a joined-up loyalty offering across the partnership. The report also notes that which include free “treat” products and personalised rewards, it currently offers separate John Lewis and Waitrose loyalty cards. The report also notes that “It is the biggest business tax that we face, and in some locations it is bigger than our rent bill. The report also notes that “Anything that the government can do to help us employ more people and be able to drive more growth would be very helpful.”. The report also notes that 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.
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