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John Lewis posts £120m loss as Labour tax raid pushes up costs. Retail Reporter 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 larger than last year, as sales grew by just two per cent to £6.3bn. Jason Tarry, chairman of the employee-owned group, said: "Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business." The company said its operating costs in the period were pushed up by the rising cost of employment, including Labour's hike to employer national insurance contributions (NICs), which retailers have warned is preventing them from hiring. Sales at John Lewis fell by two per cent to £2bn in the six months to August, as the department store battled with a "more challenging" discretionary market, as cash-strapped shoppers cut back on spending on big-ticket items. News updates. Stay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox. The retailer said it has been more sparing in its discount offers in a bid to boost sales of full-price items, though it did invest in promotions "in response to the subdued market". The department store chain posted an adjusted operating loss of £83m, up from £53m last year, which it said reflected "softer trading, cost growth" and higher investment. Earlier this month, Peter Ruis stepped down as managing director of John Lewis, just three years into his bid to revamp the "stuffy" department store chain. He has been replaced by former New Look boss Will Kernan. In his last act as managing director, Ruis said the UK economy is facing a "permacrisis" and warned the government against a "terrible" business rates raid on large retailers. Iran war 'weighs on John Lewis customers' Up-market grocer Waitrose was a bright spot for the Partnership in its trading update on Thursday, taking a four per cent sales uplift to £4.3bn. But the group said that higher costs caused by the summer heatwaves weighed on the supermarket's margins and pushed its adjusted operating profit down by six per cent to £103m. Waitrose said it invested £20m in pushing down prices, as grocers compete to attract shoppers minding their budgets amid fears that the Iran war is pushing up inflation. "There is no doubt the wider economic and geopolitical landscape has weighed on our customers during the first half and we remain cautious in our outlook for the second half," the group said. The Partnership said it expects to make most of its annual profit in the second half of the year, adding that it is confident it is "doing the right things for our customers". John Lewis said it will soon see the benefits of its investment in its infrastructure, including shop-floor refurbishments, electronic shelf labels and warehouse automation. Tarry said: "We are managing the business with discipline and have chosen to keep investing in our customers, Partners and the long-term strength of our brands. "While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength."

John Lewis sales fall as losses widen amid continued investment. John Lewis has reported a 2% decline in first-half sales as weaker demand for discretionary purchases and higher costs contributed to a widening operating loss. For the 26 weeks to 1 August 2026, John Lewis sales fell to £2.0bn, compared with £2.07bn in the same period last year. Adjusted operating losses increased to £83m from £53m, reflecting softer trading, cost inflation and continued investment in the transformation of the business. The retailer said the wider discretionary market had become more challenging during the period, although disciplined stock management and more targeted promotional and clearance activity helped full-price sales increase by 5.5%. Across the wider John Lewis Partnership, which also includes Waitrose, sales increased by 2% to £6.3bn. However, loss before tax and exceptional items widened significantly to £89m, compared with £34m a year earlier, with the Partnership citing increased investment, tougher trading conditions and the higher cost of doing business. Investment across the Partnership increased by 29% to £246m during the half, as the business accelerated store modernisation, technology upgrades and improvements to its supply chain and inventory management systems. Cash generated from operations fell by £46m to £131m, while total liquidity remained at £1.4bn. John Lewis said there were encouraging signs that investment in its omnichannel proposition was beginning to deliver results, with refurbished stores outperforming the wider estate. The retailer is investing £50m in its store estate this year, including projects in Glasgow, Cambridge, Leicester, Reading and Liverpool. It has also introduced more than 100 new brands and products, launched a new Sport and Wellness concept and unveiled its new Platter hospitality proposition, which is expected to reach 32 cafés and restaurants by the end of 2027. Investment during the first half has also supported what John Lewis describes as a significant refresh of its website, while the reinstated Never Knowingly Undersold proposition continues to form part of its focus on quality, service and competitive value. Will Kernan has been appointed Managing Director of John Lewis, succeeding Peter Ruis. At Partnership level, the statutory loss before tax increased to £124m from £88m in the comparable period, including £35m of exceptional costs, principally associated with restructuring and the modernisation of its cloud technology. Jason Tarry, Chairman of the John Lewis Partnership, said the results reflected continued investment in the transformation of the business alongside a more challenging trading environment and increasing operating costs. He added that stores which had already been transformed were outperforming the rest of the estate, giving the Partnership confidence in the longer-term commercial potential of both John Lewis and Waitrose. The performance of the two businesses diverged during the half. Waitrose sales increased by 4% to £4.3bn, while John Lewis continued to be affected by pressure on consumer spending on larger discretionary purchases. The Partnership remains cautious about the second half, citing continued economic and geopolitical uncertainty. It said the majority of its annual profit is traditionally generated during the second half of the year and that the full-year result will therefore be heavily dependent on peak trading. Insight DIY Analysis The numbers underline the challenge facing John Lewis. The business is continuing to invest heavily in stores, digital and its proposition at precisely the point when consumers are becoming more cautious about larger discretionary purchases. The encouraging element is the evidence that refurbished stores are outperforming the wider estate. The key question now is whether those improvements can be translated quickly enough across the business to offset rising costs and restore profitability. For suppliers operating across Home, the results are also worth watching closely. John Lewis Home revenue fell to £413m from £425m in the comparable period, while Fashion and Technology revenues also declined. With the critical Christmas trading period still ahead, the second half will provide a much clearer indication of whether the retailer's investment programme is beginning to translate into meaningful commercial returns. 10 September 2026 Insight DIY always publishes the latest news stories before anyone else and we find it to be an invaluable source of customer and market information. Max Crosby Browne - CEO, Home Decor

Christmas hiring drive aims to help young workers, John Lewis Partnership says. By PA News Agency The John Lewis Partnership is recruiting more than 10,400 seasonal roles (Mike Egerton/PA) The John Lewis Partnership (JLP) has said it is offering thousands of jobs to young workers as part of this year's Christmas hiring drive. The company, which incorporates John Lewis department stores and Waitrose supermarkets, said it was recruiting more than 10,400 seasonal roles. Of the roles, around 6,000 are with Waitrose's 320 shops and 2,600 will be across John Lewis's 36 shops. A further 1,800 roles will be across the group's distribution centres and supply chain. The hiring drive marks a step down from last year when JLP aimed to take on 13,700 seasonal roles - its biggest-ever recruitment round for the Christmas period. JLP said it recruits from all ages and backgrounds but that its seasonal roles have typically been popular among younger candidates - with around three-quarters of those hired in previous years being under 25. Helen Webb, JLP's chief people officer, said retail was a "vital stepping stone for young people entering the workforce". "With youth unemployment remaining a significant challenge, we recognise the role we play in providing meaningful opportunities to learn and grow," she said. The number of young people not in education, employment or training, so-called Neets, was over a million earlier this year for the first time in more than a decade, official figures showed. This fell to 981,000 Neets, who are aged 16 to 24, in April to June, but remained 30,000 higher than a year ago, prompting renewed calls for more help to get young people into work. JLP offers £13 an hour for seasonal roles, or £14.55 in London. Pay rises to £13.25 UK-wide and £14.80 in London after 30 days. The company also said that, within the 10,400 roles, it expects to recruit 100 young people who have a background in the care system as part of a commitment to help reduce barriers for those finding work. "By offering thousands of roles to under-25s and guaranteeing interviews for care-experienced young people, we are actively helping to break down barriers to employment and investing in the future of our communities," Ms Webb said. Meanwhile, JLP has laid out a three-year turnaround strategy to staff to "get John Lewis leading again", according to internal communications reported by the Financial Times. This includes targeting more than £100 million in additional profit through efforts to bring together its John Lewis and Waitrose loyalty programmes, which offer personalised rewards and benefits to customers, the report said. JLP has been contacted for comment.