Retailer Wide Loss
John Lewis Reports £124m Half-Year Loss Amid Rising Costs and Cautious Spending
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Key Points
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The partnership operates 36 John Lewis department stores and more than 300 Waitrose supermarkets; its restructuring has closed 16 department stores and at least 20 Waitrose outlets, with thousands of jobs eliminated.
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John Lewis department-store chief Peter Ruis is stepping down after less than three years and has been replaced by Will Kernan, the former head of River Island.
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Despite the first-half loss, the employee-owned retailer paid its 69,000 partners a bonus in March for the first time in four years: 2% of salary, from a £35 million pool, following a 6% increase in underlying profit.
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Waitrose’s sales growth came with pressure on profitability: its margin fell from 2.8% to 2.6%, partly because of additional costs linked to the summer heatwaves.
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Chairman Jason Tarry defended the company’s longer-term strategy, saying its employee-owned structure and financial strength allowed it to take a longer-term view despite the wider loss.
John Lewis Partnership, which owns department stores and Waitrose supermarkets, reported a first-half pre-tax loss of £124 million, more than double its £88 million loss a year earlier Oxford Mail. The employee-owned retailer blamed higher employer National Insurance costs, store investments, and weak consumer spending on big-ticket items, even as overall sales grew 2% to £6.3 billion AOL.
Despite the widening loss, the company paid its 69,000 employees a 2% salary bonus in March—the first payout in four years Scotsman. The crucial Christmas trading season ahead will be critical for the retailer's turnaround after aggressive store closures and job cuts over the past year.
Waitrose Grows While John Lewis Department Stores Struggle
Waitrose supermarkets drove group growth, with sales up 4% to £4.3 billion Furniture News. But the core John Lewis department-store chain posted a 2% sales decline to £2 billion, signaling continued weakness in big-ticket purchases like furniture and electronics Home of Direct Commerce.
Waitrose's margin fell from 2.8% to 2.6%, partly because summer heatwaves drove unexpected costs Scotsman. The supermarket chain's strong performance masks pressure on profitability across the partnership's portfolio.
Restructuring Closes 16 Department Stores and Job Cuts
John Lewis has shut 16 of its 36 department stores over the past year, with at least 20 Waitrose outlets also closed Oxford Mail. The restructuring eliminated thousands of jobs but allowed the company to redirect resources toward its stronger supermarket chain.
Despite these cuts, management insisted the deeper loss reflects investment in transformation, not failure. Chairman Jason Tarry said the employee-owned structure lets the company take a longer-term view despite near-term pain Scotsman.
Leadership Change and Employee Bonus Return
John Lewis department-store chief Peter Ruis stepped down after less than three years and was replaced by Will Kernan, former head of River Island Oxford Mail. The leadership swap signals the company is accelerating its strategy shift away from traditional department stores.
The company returned a £35 million bonus pool—2% of salary—to 69,000 partners in March Scotsman, a symbolic gesture of confidence after four years without payouts. The bonus came despite underlying profit rising just 6%, underlining weak overall performance Furniture News.
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