John Lewis posts £120m loss as Labour tax raid pushes up costs
The owner of John Lewis fell to a loss of more than £120m in the first half of its trading year as the retail giant hit out at Labour tax raids for “the increased costs of doing business”. The John Lewis Partnership, which also owns Waitrose, posted a pre-tax loss of £124m, 41 per cent [...]
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.
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Also reported by 1 other outlet
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