The John Lewis Partnership has reported a 2% increase in sales to £6.3 billion, as growth at Waitrose offset weaker demand at John Lewis.
Loss before tax and exceptional items widened by £55 million to £89 million in the 26 weeks to 1 August 2026, as investment increased by 29% to £246 million. The investment covered store modernisation, technology, supply-chain automation and inventory systems.
Waitrose delivered sales growth, but weaker demand for larger discretionary purchases weighed on John Lewis. The department store saw sales decline by 2% to £2 billion, while its adjusted operating loss widened by £30 million to £83 million, reflecting softer sales, rising costs and continued investment in its transformation programme.
Full-price sales increased by 5.5%, supported by targeted clearance activity and disciplined stock management, although the retailer increased promotional activity in response to subdued demand.
John Lewis added that its refurbished stores were outperforming the wider estate. The retailer’s £50 million investment across Glasgow, Cambridge, Leicester, Reading and Liverpool forms part of its wider £800 million transformation programme.
Customer satisfaction also remains “strong” across its brands, with shoppers responding positively to its investments, which increased by 29% in the first half to £246 million.
During the half, John Lewis introduced more than 100 brands and products, launched a Sport and Wellness concept and prepared for a website refresh. Its Platter hospitality proposition is expected to reach 32 cafés and restaurants by the end of 2027.
The retailer partnered with Rixo on its biggest collaboration to date, as well as with womenswear designers Amanda Wakeley, Rejina Pyo and Labrum. It also appointed Jacqui Markham as its new Fashion Creative Director. She oversees the creative direction of John Lewis’ own-brand fashion across womenswear, menswear and childrenswear.
Markham joined from Whistles, where she was Creative Director. She previously held senior design roles at Topshop, where she was Global Design Director, and ASOS, where she was Design Director.
In beauty, the department store strengthened its proposition through a new brand partnership with K-beauty retailer Skin Cupid, alongside expanded services and loyalty initiatives, as it seeks to respond to rising consumer demand in the category.
Jason Tarry, Chairman of the John Lewis Partnership, said: “Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business.
“Partnership sales grew, customer satisfaction remains strong and the stores we’ve transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis.
“We are managing the business with discipline and have chosen to keep investing in our customers, Partners and the long-term strength of our brands. While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength.
“As in every year, our profit is earned in the second half, so our focus now is on serving customers brilliantly through our peak trading period. I’m grateful to all our Partners for everything they continue to deliver.”
The Partnership said it remains cautious about the second half because of economic and geopolitical pressures. Most of its annual profit is generated during this period, making festive trading central to its full-year outcome.
The update comes after John Lewis opened its online Christmas shop earlier than last year, following a more than 33% week-on-week increase in searches for festive products, with interest in Christmas emerging three weeks earlier than in 2025.
The business is also recruiting more than 10,400 seasonal workers across its stores and supply chain. The roles will cover the Partnership’s 320 Waitrose branches, 36 John Lewis shops, distribution centres and supply chain operations.
The recruitment drive comes as around one million young people in the UK are currently not in education, employment or training (NEET). The company said the seasonal roles could provide an opportunity for young people to gain workplace skills and begin careers in retail.
The hiring push also follows outgoing John Lewis Managing Director Peter Ruis’ recent warning that the Government should not increase business rates for large retailers ahead of the Budget, describing the potential impact on the high street as “terrible”.
Ruis said he remained optimistic about Christmas trading but acknowledged that economic pressures were affecting the families of core John Lewis customers, particularly those supporting graduate and teenage children. Concerns over interest rates were also adding to uncertainty.