The John Lewis Partnership has reported a substantial half-year loss, with figures revealing an £88m deficit.
The employee-owned retail giant, which operates the John Lewis department stores and Waitrose supermarkets, attributed the setback to rising national insurance contributions and new packaging taxes.
Despite the significant financial hit, the group expressed confidence in its ability to achieve profit growth by the end of the full financial year, saying it remains “well positioned”.
The pre-tax loss before exceptional items stood at £34m for the 26 weeks ending 26 July.
However, once exceptional costs related to its ongoing turnaround programme and non-cash impairments were factored in, this figure escalated to the £88m pre-tax loss.
This compares unfavourably to a £30m loss recorded in the same period in 2024.
JLP said this included a £29m impact from the extended producer responsibility (EPR) packaging and higher national insurance payments after they were introduced in April following last year’s autumn Budget.
The group also said its profitability was dragged down by its significant investment plan.
It said its investments in technology, supply chains and stores have helped drive stronger sales momentum over the half-year and increased customer numbers.
JLP said it expected continued sales growth to support stronger profits in the second half of the year despite “challenging” wider economic conditions.
Jason Tarry, who took over as chair of the group a year ago, said that the group’s profits are heavily weighted to the second half of the year, which includes the key Christmas trading period.
He added: “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets.
“We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year.
“While we are reporting a loss in the first half, we’re well positioned to deliver full-year profit growth, which we’ll continue to invest in our customers and partners.”
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