Losses have widened at John Lewis, as the high street bellwether is hit by rising costs as it tries to nail its turnaround plan.
The John Lewis Partnership has reported an £88m pre-tax loss for the first half of its financial year this morning, up from £30m a year ago.
It points the finger at the higher national insurance contributions (NICs) brought in by chancellor Rachel Reeves in last year’s budget, plus £29m of costs from the UK’s new packaging levy.
On a brighter note, sales across the partnership – which includes Waitrose and John Lewis department stores – rose by 4% in the 26 weeks to 26 July 2025, to £6.2bn. That may indicate that the turnaround strategy is paying off.
Chair Jason Tarry insists the partnership is on track to deliver profit growth for the full year, saying: “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full-year profit growth, which we’ll continue to invest in our customers and partners.”
Last year, the company tripled its profits to £126m; earnings are higher in the second half of the year due to Christmas and Black Friday.
Also coming up today … The European Central Bank is expected to leave eurozone interest rate on hold, at a governing council meeting overshadowed by the political crisis in France.
Investors will also be watching the latest US inflation report, which is expected to show the cost of living rose at a faster pace in August. Headline inflation is forecast to rise to 2.9%, up from 2.7% a month earlier.
Today’s key events
• 1.15pm BST: European central bank interest rate decision
• 1.30pm BST: US inflation report for August
• 1.45pm BST: ECB press conference
We’ll be tracking all the main events throughout the day on our business live blog …
