John Lewis Partnership 'cautious' as losses rise

The John Lewis Partnership has seen half-year losses more than double amid tougher trading.

The employee-owned group reported losses before tax and exceptional items of £89 million for the six months to August 1, up from £34 million a year earlier.

Pre-tax losses widened to £124 million from £88 million a year ago, as costs – including a head office restructure – weighed on results.

The group owns the department store chain and Waitrose supermarkets.

It said department store sales fell two per cent amid consumers holding back on discretionary spending, though Waitrose sales rose four per cent.

Overall half-year sales rose two per cent to £6.3 billion.

Chair Jason Tarry said: “Our 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.

“They’re cautious at the moment, given what’s going on in the world.”

The firm added that while the second half of the year – including Christmas – is traditionally much stronger, it remains cautious.

It added: “The wider economic and geopolitical landscape has weighed on customers during the first half.

“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 update comes amid a senior change, with Will Kernan, a former non-executive director at John Lewis, taking over from Peter Ruis at the helm of the department store business.

The new managing director’s career has included stints as boss of high street retailers River Island and The White Company.

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