John Lewis Partnership has reported a widening first-half loss as cautious consumers cut back on spending on big-ticket products for the home.
The owner of John Lewis and Waitrose recorded a pre-tax loss of £124 million for the six months to 1 August, compared with an £88 million loss during the same period last year. Overall partnership sales increased by 2% to £6.3 billion.
However, the two sides of the business delivered contrasting performances. Waitrose sales increased by 4%, while sales at John Lewis fell by 2%.
John Lewis Partnership Chair Jason Tarry described the first half as a “tougher market than we had planned for”, with customers particularly cautious when considering larger purchases for their homes.
He pointed to higher interest rates, the cost of living and wider global uncertainty as factors weighing on consumer confidence. The business also faced higher costs from increased National Insurance contributions and the summer heatwaves.
The figures will be of particular interest to the electrical retail sector, with John Lewis heavily exposed to categories where purchases can be delayed.
Robyn Duffy, an analyst at RSM UK, said the retailer was particularly vulnerable in “big-ticket, deferrable categories like home, furniture and electricals”, where consumers are choosing to postpone spending.
The results come as the employee-owned partnership continues its turnaround programme, having closed 16 John Lewis department stores and at least 20 Waitrose locations since the pandemic, alongside thousands of job cuts.
Despite the weaker first half, Mr Tarry said he remained confident the partnership would make a profit for the full financial year. John Lewis traditionally generates the majority of its profit during the second half, which includes the crucial Christmas trading period.
The results follow a change at the top of the department store business, with former managing director Peter Ruis stepping down last month and being replaced by former River Island boss Will Kernan.
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