John Lewis Partnership flags customer caution
The John Lewis Partnership (JLP) has sounded a note of caution over its outlook after surging costs and weaker consumer confidence contributed to deeper half-year losses.
The John Lewis Partnership reported a £120 million loss in the first half of its trading year, as rising costs from Labour's tax policies and a challenging market impacted the business. The pre-tax loss was 41% higher than the previous year, with sales only growing by 2% to £6.3 billion. Operating costs were driven up by the increased employer national insurance contributions (NICs), which have discouraged retailers from hiring new staff.
Sales at the department store arm, John Lewis, fell by 2% to £2 billion, as consumers cut back on big-ticket items due to a tougher discretionary market. The company has been more cautious in its discounts and has invested in promotions to boost sales of full-price items. The Partnership's managing director, Jason Tarry, stated that the company is managing the business with discipline and investing in customers, staff, and long-term brand strength.
Despite the losses, Tarry remains confident in John Lewis' long-term prospects, as the higher costs are expected to be offset in the second half of the year.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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