John Lewis losses widen to £124m as shopper confidence dips
Retailer says higher costs also hit first-half figures as group pursues its turnaround plan, though Waitrose grew sales Losses at the owner of John Lewis and Waitrose widened by more than 40% in the first half of the year as it struggled with higher costs and with shoppers feeling less confident about their money. The John Lewis Partnership, which operates 36 department stores and more than 300…
John Lewis and Waitrose's losses more than doubled to £124 million in the first half of the year, as rising costs and declining shopper confidence weighed on the retailer. The John Lewis Partnership, which oversees 36 department stores and over 300 Waitrose supermarkets, reported a pre-tax loss for the six months ending August 1st.
Chair Jason Tarry attributed the decline to the company's ongoing investment in transformation, a tougher trading environment, and increased business expenses. Higher costs included increased national insurance contributions and operational challenges during heatwaves. Meanwhile, Waitrose showed resilience, with sales up 4% to £4.3 billion, as department store sales fell 2% to £2 billion.
The group is undergoing a turnaround plan, closing 16 department stores and 20 Waitrose outlets, and reducing workforce. Waitrose's sales growth outpaced the department store chain, but overall sales for the half-year rose 2% to £6.3 billion. The decline in profit follows Peter Ruis' departure as head of the department store arm after less than three years, replaced by Will Kernan.
Despite paying staff a bonus for the first time in four years in March, the retailer has faced weak consumer spending, particularly during summer heatwaves and the rising cost of living, which has deterred shoppers from visiting high streets, preferring online shopping instead.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
