John Lewis Partnership has recorded a £34 million loss before tax and exceptional items in the half-year leading up to the end of July 2025 — despite Partnership sales growing to £6.2bn, an increase of 4% year-on-year. It attributes this loss to planned strategic investments and one-off costs like the new packaging levy and higher National Insurance Contributions.
Cash generated from operations was £177m, a £30m increase year-on-year. Sales at Waitrose saw a 6% increase to £4.1bn and a 3% rise in volumes year-on-year, and sales at John Lewis rose 2% to £2.1bn — evidence, the company says, that it is outperforming a market overshadowed by economic uncertainty.
What the company says
In its statement on the results, John Lewis Partnership says: “On a like-for-like basis, our loss before tax and exceptional items (LBTBE) was broadly flat compared to last year’s £5m. This stable result also includes a planned £30m of strategic investment in operating costs targeted at technology, financial services, and our central teams to accelerate our growth. While this impacts profitability in the short term, it is a foundational part of our strategy for the benefit of our customers and Partners.”
As well as investing heavily in physical retail — including seven major refurbishments, one new convenience store, two new Welcome Break shops, and a new distribution centre, plus it announced its first major store opening in a decade — digital services form a key part of John Lewis Partnership’s investment in growth. It has accelerated investment in omnichannel options like “deliver from store” and rapid online delivery, as well as modernisation of its technology and supply chain — reflecting that seamless integration between physical and digital channels is central to its growth strategy.
Customer loyalty
Customer loyalty is at the heart of this strategy, with the reintroduction of the “Never Knowingly Undersold” promise helping to drive value and customer satisfaction. Indeed, customer satisfaction reached its highest recorded level, with the My John Lewis loyalty scheme growing by 13% — recognising the fact that digital engagement strategies such as personalised offers, loyalty rewards, and improved online experiences resonate with customers, and that online sales success increasingly depends on customer-centric digital experiences and data-driven loyalty programs.
Commenting on the results, Jason Tarry, Chairman of the John Lewis Partnership, said: “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our Partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and Partners.”
As the John Lewis Partnership doubles down on its hybrid retail strategy and customer-centric investments, the short-term financial hit may well be the price of long-term resilience. With peak trading ahead and digital transformation accelerating, the second half of the year will be a crucial test of its vision.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research. Click here to subscribe to the FREE newsletter sent straight to your inbox. Why not follow us on LinkedIn to receive the latest updates on our research and analysis?
