John Lewis losses widen to £124m as shopper confidence dips
The John Lewis Partnership, owner of John Lewis and Waitrose, reported that its pre-tax losses widened by more than 40% in the first half of the year, as weaker shopper confidence and rising costs weighed on trading. The results highlight the strain facing one of Britain's last remaining national department store groups, even as it presses ahead with a turnaround plan involving significant store closures and job cuts.
Pre-tax losses for the six months to 1 August rose to £124m, up from £88m a year earlier, with the chair, Jason Tarry, citing continued investment in the transformation, a tougher trading environment and higher costs such as increased national insurance contributions and expenses from managing operations through heatwaves. Waitrose outperformed the department stores, with supermarket sales up 4% to £4.3bn against a 2% fall to £2bn at John Lewis, leaving overall group sales up 2% at £6.3bn. The figures follow the departure of department store boss Peter Ruis, replaced by former River Island chief Will Kernan, and come after the firm paid staff a bonus in March following a stronger year; the partnership says it is well positioned for the crucial Christmas trading period ahead.
- John Lewis Partnership's half-year losses widened over 40% to £124m
- Waitrose sales grew 4% while department store sales fell 2%
- New department store boss appointed as group eyes Christmas recovery