First-half results
On September 10, 2026, John Lewis Partnership disclosed results for the 26 weeks to August 1. Sales grew by 2%, but the loss before tax widened to £124 million. Excluding exceptional items, the loss was £89 million, compared with £34 million a year earlier. The group's sales measure includes VAT and other adjustments. [1 · John Lewis Partnership]
Two brands with different performance
Waitrose sales increased by 4%, with online sales up 11%. John Lewis sales fell by 2%; the company linked this to customers' caution over large discretionary purchases. The group increased investment to £246 million while continuing store refurbishment. [1 · John Lewis Partnership]
What the seasonal peak will show
It is too early to judge the program's return from the half-year alone: the group points to the seasonal importance of the second half. The key question is whether store refurbishment will improve performance during peak demand. [1 · John Lewis Partnership]
Sources
- John Lewis Partnership — half-year results — September 10, 2026; 26 weeks to August 1.
- Morgan and Hunt — commitment-trust theory, 1994
- Gallino and Moreno — interaction between online and offline channels, 2014
Expert commentary
A growing loss alongside investment allows two explanations: the group is paying for future improvement, or it continues to invest in an insufficiently productive model. I would not choose a definitive diagnosis yet. Management reports stronger performance at refurbished stores, but that is not independent proof of returns. Nor can capital investment be directly equated with the expenses that produced the half-year loss: these are different reporting categories, and the connection needs to be broken down. [1 · John Lewis Partnership]
The divergence between Waitrose and John Lewis shows why a shared group strategy must preserve differences in customers' needs. A grocery chain can strengthen the habit of regular visits, while a department store must make a convincing case for a large discretionary purchase. In my view, John Lewis's competitive advantage should be tested through the usefulness of advice, product selection and after-sales support. If refurbishment is limited to the appearance of the space, resilience to cautious spending will remain weak. [1 · John Lewis Partnership]
In relationship marketing, the transition from satisfaction with an individual purchase to confidence in the seller matters. Morgan and Hunt treat trust and commitment as mechanisms of cooperation; their research concerns relationships between companies, not a direct assessment of British retail. Applied to the group, I propose a testable hypothesis: consistent problem-solving and knowledgeable staff will deliver greater long-term value than a rewards program that customers perceive solely as a temporary discount. [2 · Morgan and Hunt] [1 · John Lewis Partnership]
For customers, investment in product availability and inventory management may be more useful than the sheer scale of the refurbishment program. Gallino and Moreno show that reliable stock information can change the purchase journey between channels. The practical criterion here is whether a person can find, order and receive what they need without searching again. On-screen convenience must be backed by fulfillment; otherwise, the group is paying for digital infrastructure that does not save customers time. [3 · Gallino and Moreno] [1 · John Lewis Partnership]
The societal dimension concerns how modernization's results are shared between customers and employees. The company is raising pay while changing its central structures. My assessment is that automation will support service quality if it genuinely frees staff time for complex tasks. If it accompanies a loss of expertise or overloads the remaining team, savings may turn into complaints and weaker trust. The report provides no basis to consider either scenario already realized. [1 · John Lewis Partnership] [2 · Morgan and Hunt]
The coming season will provide new data, but a simple comparison with the first half will be distorted by seasonality. Comparable stores, the previous holiday period and a full calculation of refurbishment costs are needed. I would track sales without discounts, gross profit after returns, repeat customer contacts and cash flow. In the positive scenario, refurbished stores retain an advantage after construction and the initial excitement; in the negative scenario, cost growth persistently outpaces additional profit even as demand recovers seasonally. [1 · John Lewis Partnership]