(qlmbusinessnews.com . Fri 12th Sep, 2025) London, UK —
Economic Turbulence Leads to Soaring Losses for John Lewis and Waitrose Owner
John Lewis Partnership has reported a nearly threefold increase in its losses for the first half of the financial year, attributing the downturn to fresh obligations for waste packaging costs and a rise in National Insurance Contributions (NICs).
The group, owning both John Lewis department stores and Waitrose supermarkets, revealed pre-tax losses expanding to £88 million, up from £30 million recorded the preceding year.
Jason Tarry, the Chair of John Lewis Partnership, remarked on the challenging economic landscape, noting, “Without a shadow of a doubt, consumer confidence is muted in anticipation of the upcoming November Budget.”
However, the Partnership maintains a positive outlook on achieving profit growth for the full year, banking on the crucial holiday season to drive sales.
Over the reporting period, John Lewis Partnership faced a £29 million expenditure linked to both the implementation of the Extended Producer Responsibility (EPR) policy and increased NICs. The EPR policy shifts the financial responsibility for managing waste packaging from local authorities to retailers and manufacturers, potentially affecting food prices as the Bank of England suggested a potential rise of up to 0.5%.
An equal split was noted in the £29 million costs between the new packaging levy and employer National Insurance payments.
Amid last year's financial adjustments announced in the Budget—mainly the changes to NICs—John Lewis had voiced concerns over the probable hike in prices and resultant job losses.
With a cautious yet hopeful outlook, Mr. Tarry spoke on the economy and the pending Budget declaration, focusing on bolstering sales in the latter half of the year, specifically around the Christmas period, to enable the Partnership to declare a profitable year-end result. “We are a second half business, no doubt about that. All of our profit is in the second half,” he asserted.
Highlighting potential Christmas bestsellers, Tarry anticipates strong demand for items such as wearable technology and Jellycat soft toys. Waitrose, in addition, has recorded a 6% sales increase, reaching £4.1 billion, indicating consumer inclination towards indulgence during the holiday season.
With total revenue across the Partnership marking a 4% rise to £6.2 billion, Tarry expressed a commitment to awarding staff bonuses at the earliest opportunity, despite it being too premature to determine the timing. It's worth noting, the staff have gone three years without receiving a bonus.
In response to the challenges posed by the pandemic and increased competition, John Lewis has rejuvenated efforts to attract and retain customers, reinstating its competitive ‘Never Knowingly Undersold' price pledge last year.
Zoe Mills, a leading analyst at GlobalData, commented on the results, highlighting that the company's commitment to competitive pricing and knowledgeable staff in departments such as electronics and make-up could further enhance its appeal to consumers seeking reliable guidance and product recommendations.
This News Story is brought to you by QLM Business News, your Digital Media Channel.
Visit QLM businessnews.com for more business news stories. Also follow us on Facebook, X, and Youtube.
To help QLM Business News bring you more news stories like this, please like, share, and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
