The John Lewis Partnership is currently undergoing a substantial turnaround effort. Waitrose, the grocery arm, has been the stronger financial performer, generating $256 million in adjusted operating profit in the last financial year, more than four times the $58 million delivered by John Lewis department stores. Waitrose's sales increased by 7% to $8.5 billion, while John Lewis saw a more modest 3% rise to $4.9 billion.
Despite the differing performances, both brands are central to Chairman Jason Tarry's overhaul. The Partnership is investing $1 billion into Waitrose and $800 million into John Lewis to revitalize its flagship brands. The turnaround for the department store has proven more challenging due to weak consumer confidence and pressure on big-ticket spending. John Lewis is investing $50 million this year across five stores, including a more than $20 million redevelopment of its Glasgow branch, alongside upgrades in Cambridge, Leicester, Reading, and Liverpool.
Overall, the John Lewis Partnership saw group sales increase by 5% to $13.4 billion, with underlying profit up 6% to $134 million. However, the group reported a $21 million statutory pre-tax loss, primarily due to $120 million in exceptional charges related to writing down legacy technology systems. The company remains cautious about the outlook for trading in 2026/27 but is positioned to navigate a challenging macroeconomic environment with improved liquidity and low external borrowings, allowing continued investment in its retail-first strategy. The partnership anticipates significantly higher full-year profit, with first-half losses narrowing by 91%.
