John Lewis remains upbeat despite deeper losses – Daily Business

Higher investment and challenging trading conditions have been blamed by John Lewis Partnership for deeper half year losses.

The department stores and Waitrose supermarket business posted a loss before tax and exceptionals of £89 million for the 26 weeks to 1 August, up from £34m at the same stage last year

Exceptional costs in the half were £35m (2025/26: £54m), primarily restructuring costs relating to head office, as well as costs associated with cloud technology modernisation.

Partnership sales increased by 2% to £6.3 billion after investments in brands rose by 29% to £246m, supporting store modernisations.

This year’s £50m store investment programme includes Glasgow, Cambridge, Leicester, Reading and Liverpool.

There was good sales momentum in Waitrose, but weaker customer demand for larger discretionary purchases impacted John Lewis sales. To help mitigate this, the partnership continued to focus on driving productivity across the business, through both margins and operating costs.

Jason Tarry, chairman, said: “Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business.

“Partnership sales grew, customer satisfaction remains strong and the stores we’ve transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis.

“We are managing the business with discipline and have chosen to keep investing in our customers, Partners and the long-term strength of our brands.

“While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength.

“As in every year, our profit is earned in the second half so our focus now is on serving customers brilliantly through our peak trading period. I’m grateful to all our partners for everything they continue to deliver.”