UK John Lewis store reports loss due to high cost of living.

UK John Lewis store reports loss due to high cost of living.

Branding for John Lewis is seen on its store in London, Britain March 10, 2022.

REUTERS/Toby Melville

John Lewis Partnership Ltd, a British retailer, warned on Thursday that the outlook for the rest of the year was highly uncertain due to the impact of the cost of living crisis on discretionary spending.

The company said that while department store sales were up 3% on a like-for-like basis to 2.1 billion pounds, Waitrose sales dropped 5% to 3.6 billion pounds.

The employee-owned group, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, said that despite the loss, the partnership did announce a one-off cost of living support payment of 500 pounds for full-time employees known as "partners".

With the partnership hit hard by the pandemic, White set out a five-year recovery plan in October 2020 that included store closures and job cuts but also investment in its online operations.

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Summary

Companies First half loss of 92 million pounds

Says outlook for rest of year is highly uncertain

ays needs good Christmas if staff to get bonus

The employee-owned group, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, on Thursday logged a loss before tax and exceptional items of 92 million pounds ($106 million) in the six months to July 30.

That compares with a profit of 69 million pounds in the same period last year.

It said that while department store sales were up 3% on a like-for-like basis to 2.1 billion pounds, Waitrose sales dropped 5% to 3.6 billion pounds.

The partnership attributed the loss to higher costs not being fully passed on to customers, the slide in demand, the unwinding of pandemic shopping patterns as well as greater investment in the business.

Despite the loss, the partnership did announce a one-off cost of living support payment of 500 pounds for full-time employees known as "partners".

Sharon White, a former Treasury official who chairs the partnership, said a successful Christmas would now be key for the business.

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3Says needs good Christmas if staff to get bonus

The employee-owned group, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, on Thursday logged a loss before tax and exceptional items of 92 million pounds ($106 million) in the six months to July 30.

That compares with a profit of 69 million pounds in the same period last year.

It said that while department store sales were up 3% on a like-for-like basis to 2.1 billion pounds, Waitrose sales dropped 5% to 3.6 billion pounds.

Subsection 4. Britons are seeking savings in the face of soaring inflation, which was 9.9% in August and is expected to rise further this year.

Last week industry data showed the slowest growth in retail sales since the end of COVID-19 lockdowns last year.

UK fashion retailers Primark (ABF.L), ASOS (ASOS.L) and online supermarket Ocado Retail (OCDO.L), (MKS.L) have all warned on profit this month.

Section 5. The partnership attributed the loss to higher costs not being fully passed on to customers, the slide in demand, the unwinding of pandemic shopping patterns as well as greater investment in the business.

Despite the loss, the partnership did announce a one-off cost of living support payment of 500 pounds for full-time employees known as "partners".

Subsection 5.2 Sharon White, a former Treasury official who chairs the partnership, said a successful Christmas would now be key for the business.

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The employee-owned group, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, on Thursday logged a loss before tax and exceptional items of 92 million pounds ($106 million) in the six months to July 30.

That compares with a profit of 69 million pounds in the same period last year.

It said that while department store sales were up 3% on a like-for-like basis to 2.1 billion pounds, Waitrose sales dropped 5% to 3.6 billion pounds.

Britons are seeking savings in the face of soaring inflation, which was 9.9% in August and is expected to rise further this year.

Last week industry data showed the slowest growth in retail sales since the end of COVID-19 lockdowns last year.

Subsection 4.5 UK fashion retailers Primark (ABF.L), ASOS (ASOS.L) and online supermarket Ocado Retail (OCDO.L), (MKS.L) have all warned on profit this month.

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The partnership attributed the loss to higher costs not being fully passed on to customers, the slide in demand, the unwinding of pandemic shopping patterns as well as greater investment in the business.

Despite the loss, the partnership did announce a one-off cost of living support payment of 500 pounds for full-time employees known as "partners".

Sharon White, a former Treasury official who chairs the partnership, said a successful Christmas would now be key for the business.

The partnership attributed the loss to higher costs not being fully passed on to customers, the slide in demand, and the unwinding of pandemic shopping patterns. The company also announced a one-off cost of living support payment of 500 pounds for full-time employees known as "partners." Sharon White, a former Treasury official who chairs the partnership, said that a successful Christmas would now be key for the business.

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With the partnership hit hard by the pandemic, White set out a five-year recovery plan in October 2020 that included store closures and job cuts but also investment in its online operations.

With the partnership hit hard by the pandemic, White set out a five-year recovery plan in October 2020 that included store closures and job cuts but also investment in its online operations.

The company said it would close eight John Lewis stores and cut 1,500 jobs as part of the plan.

It also said it would invest 1 billion pounds over five years to accelerate the shift to online shopping and make Waitrose a "digital retail leader".

On Thursday, White said the company was on track to meet its targets for the first year of the plan and had made "good progress" in adapting its business model.

Subsection 6.4 She said that while there were signs of improvement, such as an increase in footfall at John Lewis stores, it was too early to say whether this would translate into higher sales.

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