John Lewis Partnership has just posted a bigger loss for the first half of the year. Customers are holding off on more expensive, non-essential items, and rising operating costs are chipping away at the business. Together, these two pressures have hit results hard.
The Partnership’s loss before tax, Partnership Bonus and exceptional items for the 26 weeks to 1 August 2026 is £89 million. This compares to its £34 million loss during the same period last year.
That includes an extra £35m in one-off costs, mostly attributable to head-office restructuring and topping up the cloud solution, bringing the pre-tax loss to £124m. Despite this, sales overall within the Partnership increased by 2% to £6.3 billion.
The Numbers at a Glance
| Figure | First Half of 2026 |
| Underlying loss before tax | £89 million |
| Statutory pre-tax loss | £124 million |
| Partnership sales | £6.3 billion |
| John Lewis sales | £2.0 billion |
| Waitrose sales | £4.3 billion |
| Investment in brands | £246 million |
| Available liquidity | £1.4 billion |
How Did John Lewis and Waitrose Each Perform
The two brands told very different stories this half.
John Lewis was down 2% to £2bn. There is just more concern about spending on larger, non-essential items at this time. The department store division made a loss of £83 million after a £53 million loss last year.
Waitrose had a better run. Sales climbed 4% to £4.3 billion, and online orders grew even faster, up 11%. Still, profit slipped a little. Adjusted operating profit came in at £103 million, down from £110 million, as higher costs and ongoing investment ate into margins.
Here is an interesting twist though. Even with John Lewis sales falling overall, full-price sales actually rose by 5.5%. The retailer says this came down to smart promotions, careful clearance activity, and tighter stock management, all of which pulled the headline sales figure down even as full-price trading improved.
Why Did the Loss Get Bigger
A few things are behind this. Partnership points to ongoing investment, tougher trading conditions (especially for general merchandise), and the simple fact that running a retail business now costs more than it used to.
Staffing costs rose too, partly because of the knock-on effect from the earlier increase in National Insurance. On top of that, keeping stores running smoothly through the summer heatwaves added extra costs the business hadn’t planned for.
At the same time, the Partnership kept investing. Spending on stores, technology, and the overall customer experience jumped 29% to £246 million. Across the full year, it expects to invest around £600 million in total.
What This Means for Other UK Businesses
These results carry a message beyond John Lewis. Any retailer, supplier, or small business that relies on people spending freely on non-essentials should pay attention. While consumers are sparing on their groceries and other mainstream expenditures, they are being more cautious with larger items; it appears. This split is worth watching closely.
If a business ignores this shift, the risks build up quietly. Sales slow, stock piles up, margins get thinner, and cash flow starts to feel the strain. Add rising staff and supply costs into the mix, and the pressure can grow fast, even when revenue on paper looks steady.
For its own part, John Lewis Partnership is staying cautious about the months ahead, given the wider economic and global picture. That said, it feels well prepared for its busiest trading period, when it usually makes most of its annual profit.
| A QUICK CHECKLIST FOR BUSINESSES RIGHT NOW |
| ✓ Update your cash-flow forecasts using cautious sales assumptions |
| ✓ Review stock levels carefully before placing big seasonal orders |
| ✓ Keep a close eye on margins and the true cost of promotions |
| ✓ Work out which products are most exposed to a drop in discretionary spending |
| ✓ Stress-test whether your business could absorb further cost increases |
| ✓ Check actual sales against your forecasts more often than usual |
Lanop Business & Tax Advisors can help you review your management accounts, sharpen your cash-flow forecasting, and spot financial or tax pressures early, before they become harder to manage. Good, timely financial information lets you respond to changing customer habits with real evidence, not guesswork.
Whether you run a growing startup, a family business, a partnership, or a limited company, our team can help you stay ahead of shifting consumer behaviour and rising costs. Read more advice on our blog, explore our case studies, meet our team, or get in touch today to arrange a review.
