A major high street chain with Swindon shops has reported that its half-year losses more than doubled amid a tightening retail market and surging operational costs.
The John Lewis Partnership, with a John Lewis store in Designer Outlet Swindon and another Waitrose shop in Wichelstowe, cast a cautious shadow over the crucial Christmas trading period.
The employee-owned group that operates the John Lewis department store chain and Waitrose supermarkets, posted pre-tex losses before exceptional items of £89 million for the six months leading to August 1.
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This marks a significant worsening compared to the £34 million loss recorded during the same period a year earlier. On the bottom-line basis pre-tax losses widened to £124 million from £88 million weighed down by head office restructuring costs.
The corporate reorganisation, aimed at streamlining central teams resulted in job losses affecting less than 1% of the company’s total workforce. Despite the overall group sales increased by 2% to reach £6.3 billion, driven by contrasting fortunes within its two primary divisions.
While the Waitrose supermarket saw sales increase by 4%, the department store chain experienced a 2% sales decline. Underlying operating losses in the department store sector widened to £83 million from £53 million, as the firm leaned into heavy promotions to counter a quiet consumer market.
Jason Tarry, chairman of the JLP, pointed to a challenging retail environment, ongoing transformation investments and escalating business expenses. He noted that shoppers are increasingly hesitant to commit to major investments.
He stated: “Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business.”
"Consumers are holding back on spending on bigger ticket items," Mr. Tarry said. "They’re cautious at the moment given what’s going on in the world."
External factors played a significant role in the momentum of consumers' shopping habits. Susannah Streeter, Chief Investment Strategist at Wealth Club, highlighted that the summer heatweaves disrupted traditional shopping habits. While soaring temperatures drove demand for fans and picnic essentials, the hot weather deterred high street browsing as households sought relief elsewhere. Compounding pressure on tight budgets.
Looking ahead, the partnership continues to face financial hardship. Mr. Tarry warned of further cost pressures in the second half of the year driven by current geopolitical conflict, stemming from the Iran conflict, alongside a rising workforce bill fuelled by wage increases and National Insurance tax hikes.
Despite these challenges, leadership emphasised that the group remains committed to keeping prices competitive for shoppers.
"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 JLP stated in its half-year report.
"As in every year, the majority of our profit is earned in the second half, and the full-year outcome will be determined by peak trading."
The results mark a stark reversal following a brighter period for the partnership, which saw sales grow by 3% across the 2025–26 financial year.
Leadership changes are already underway to steady the ship, with Will Kernan taking over this week as Managing Director of the department store business from Peter Ruis.
Mr Kernan brings extensive high-end retail experience to the role, including previous leadership stints at River Island and The White Company.
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