John Lewis Partnership Posts £88m Loss as Costs and Restructuring Bite

Published: 11 September 2025 | The English Chronicle Desk

The John Lewis Partnership, the employee-owned company behind John Lewis department stores and Waitrose supermarkets, has reported a significant widening of pre-tax losses, which nearly tripled to £88 million in the first half of 2025. The group attributed the increased deficit to restructuring expenses and new tax and regulatory charges that have weighed heavily on its finances.

Despite a 4% rise in overall sales to £6.2 billion for the six months ending 26 July, the retailer faced substantial costs. New packaging regulations and national insurance payments accounted for £29 million, while £54 million was spent on restructuring efforts aimed at streamlining the business.

Sales at Waitrose grew by 6% to £4.1 billion, while John Lewis department stores saw a 2% increase to £2.1 billion, with the group noting that it was “outperforming a market impacted by ongoing economic uncertainty.” Jason Tarry, chair of the partnership, said the company’s focus on investing in customer experience and its brands had contributed to stronger engagement and higher sales.

The retailer has invested £191 million in various initiatives, including revamping stores, reintroducing its “never knowingly undersold” price pledge, adjusting staff hours to match customer demand, and hiring additional staff funded by fashion brands to enhance service levels.

In a bid to attract younger shoppers, John Lewis recently announced plans to host Topshop in 32 of its stores starting February, making it the clothing brand’s only national stockist on UK high streets. Topshop, now owned by online retailer Asos, currently operates its only physical store in the UK at Liberty in central London.

Looking ahead, the partnership warned that the macroeconomic environment remained challenging but emphasized its commitment to investment initiatives intended to drive full-year profit growth.