John Lewis Losses Widen as Consumer Confidence Falls

Published: 10 September 2026. The English Chronicle Desk. The English Chronicle Online.

John Lewis Partnership, the retail group behind John Lewis department stores and Waitrose supermarkets, has reported a significant widening of its first-half losses as higher operating costs and weaker consumer confidence continue to put pressure on the business.

The group recorded a pre-tax loss of £124m for the six months to 1 August, compared with a loss of £88m during the same period last year. The increase of more than 40% highlights the difficulties facing the retailer as it continues to implement a wide-ranging turnaround programme while dealing with an uncertain consumer environment.

Despite the heavier loss, the group reported modest growth in overall sales. Revenue for the first half rose by 2% to £6.3bn, with the supermarket business performing considerably better than the department store arm.

Waitrose recorded a 4% increase in sales to £4.3bn, helping to offset a 2% decline in sales at John Lewis department stores, which fell to £2bn. The contrasting performances underline the different challenges facing the two parts of the partnership, with shoppers continuing to spend on essential groceries while remaining more cautious about expensive household and lifestyle purchases.

Jason Tarry, chair of the John Lewis Partnership, attributed the deterioration in the group’s financial result to several factors. He said the company was continuing to invest in its transformation while operating in a more challenging trading environment and facing higher costs across the business.

Among the cost pressures were increased national insurance contributions and the additional expense associated with managing operations during periods of extreme summer heat. The company has been attempting to adapt its stores and operations while weather conditions have affected patterns of consumer behaviour.

The financial figures arrive as John Lewis Partnership continues one of the most extensive restructuring programmes in its recent history. The group has closed 16 department stores and at least 20 Waitrose outlets as part of its effort to reshape its physical retail network and improve the long-term performance of the business.

Thousands of jobs have also been cut during the restructuring process. The changes have been aimed at reducing costs and adapting the group to a retail market in which consumers increasingly shop online and traditional high street stores face intense competition.

The department store business has faced particular difficulties. Consumers have become increasingly reluctant to spend large amounts on non-essential products, including furniture and other big-ticket household items. Sofas and beds, which have traditionally been important categories for John Lewis, have been affected by the broader pressure on household finances.

The summer weather added another challenge. Successive heatwaves discouraged some consumers from visiting high streets and encouraged others to turn to online retailers instead. For a department store business that depends heavily on physical shopping experiences, the shift presented an additional obstacle during an already difficult trading period.

Waitrose, by contrast, has continued to show stronger momentum. Its 4% sales growth reflects the relative resilience of grocery spending compared with discretionary purchases. Food remains a regular household expense even when consumers reduce spending elsewhere, giving supermarket businesses a degree of protection during periods of economic uncertainty.

The divergence between Waitrose and John Lewis is therefore an important feature of the group’s latest results. While the supermarket operation is contributing growth, the department store business remains under pressure to restore sales and improve its financial performance.

The group is also undergoing changes in senior management. Peter Ruis, who led the John Lewis department store operation for less than three years, announced in August that he would step down from the position. He has been replaced by Will Kernan, the former chief executive of fashion retailer River Island.

The leadership change comes at a crucial stage for John Lewis as the company attempts to redefine the role of its department stores and compete in a rapidly changing retail environment.

Earlier in the year, there had been signs that the turnaround programme was beginning to deliver some improvements. In March, the partnership announced a staff bonus for its approximately 69,000 employees, known as partners, for the first time in four years.

The bonus represented 2% of salary and followed a 6% increase in underlying profit. The company allocated a £35m bonus pool, with the payment equivalent to roughly one additional week’s salary for many employees.

The decision to reward staff reflected the improved underlying performance at that stage and offered a positive signal after several difficult years. However, the deterioration in consumer spending over the summer has created new pressure on the business.

John Lewis Partnership is now approaching the second half of its financial year, a particularly important period because it includes the Christmas shopping season. The final months of the year typically account for a substantial share of the group’s annual profit, making the upcoming trading period critical to its turnaround efforts.

The company has indicated that it believes it is well positioned for the second half. Christmas remains one of the biggest opportunities for department stores, particularly in categories such as fashion, electrical goods, home products and gifts.

However, the wider retail environment remains challenging. The cost of living continues to influence household decisions, while consumers are increasingly selective about when and where they spend. Retailers must also compete with online specialists that can offer extensive product ranges and rapid delivery without maintaining large networks of physical stores.

John Lewis occupies a distinctive position within Britain’s retail industry. It is one of the few major national department store groups still operating on a significant scale after the collapse and closure of long-established chains such as Debenhams and Beales.

The survival of the traditional department store model has become an increasingly important issue for the British high street. Large stores require significant investment in property, staff, energy and inventory, while customers have gained access to alternatives through online shopping and specialist retailers.

The recent difficulties experienced by other department store businesses demonstrate the scale of the challenge. Harvey Nichols, another well-known British retail name, was rescued from administration during the summer after being acquired by Mike Ashley, whose wider retail interests include Sports Direct.

Ashley had previously described the flagship Knightsbridge business as being in a “death spiral”, highlighting the severe commercial pressures affecting some luxury and department store operators.

John Lewis has sought to avoid a similar outcome through its restructuring and investment strategy. The partnership has been reducing its physical footprint while attempting to strengthen its digital operations and improve the overall customer experience.

The challenge is to find a sustainable balance between physical stores and online retail. Department stores can offer customers experiences that are difficult to reproduce digitally, but maintaining large properties is expensive and becomes increasingly difficult when footfall declines.

The latest results suggest that the transformation process remains unfinished. Although overall sales have grown and Waitrose has delivered a solid performance, the widening group loss shows that higher costs and weaker department store sales continue to weigh heavily on the business.

For employees, the results will also be closely watched. John Lewis has traditionally promoted a distinctive employee ownership model in which staff are treated as partners and share in the group’s performance. The return of a staff bonus earlier this year was therefore viewed as an important moment for the workforce.

Whether the company can maintain that progress will depend heavily on the second-half performance. The Christmas period will provide a crucial test of consumer confidence and the effectiveness of the group’s turnaround strategy.

The immediate objective for John Lewis Partnership is to convert sales growth into stronger profitability while controlling the costs associated with running its businesses. Waitrose provides a relatively stable source of revenue, but the department store operation needs to regain momentum if the wider group is to achieve a sustained recovery.

The latest figures do not signal the end of John Lewis’s turnaround effort, but they demonstrate how difficult the road remains. With consumers cautious, operating costs elevated and the traditional high street under continued pressure, the coming Christmas season could prove decisive in determining whether the retailer’s long-term recovery is beginning to take shape.