Jason Tarry, chairman of John Lewis Partnership, has warned staff that deteriorating trading conditions are weighing on the profits of the group that owns Waitrose and John Lewis. He said the Partnership was preparing for a period of « lower sales and higher costs ».
The warning comes after the cautious outlook already set out by the group in March, when it published its annual results. British retailers have since faced additional inflationary pressure, linked to rising energy prices and weakening consumer spending.
Mixed results for the financial year ended in January
For the financial year ended 31 January 2026, John Lewis Partnership's profit before tax, staff bonus and exceptional items reached £134 million, up six percent. Total sales rose five percent, to £13.4 billion, and the group's liquidity strengthened to £1.6 billion.
L'an dernier, the group had posted a statutory profit before tax of £97 million. Waitrose continued to outperform the department store business, with sales up seven percent to £8.5 billion and adjusted operating profit of £256 million, up £29 million. L'enseigne John Lewis saw sales grow three percent, to £4.9 billion, with adjusted operating profit of £58 million, up £13 million.
Priority given to margins over promotions
According to Jason Tarry, the Partnership chose to « holding our nerve », giving priority to margins and strict stock control, rather than aggressive promotions to support sales growth. Ancien head of Tesco UK, he took over leadership of the group in 2024 and has since refocused the Partnership on its core retail operations.
The group withdrew earlier this year from its build-to-rent property project, redirecting its investment towards opening new Waitrose stores and renovating outlets of both chains. John Lewis Partnership is due to publish its half-year results on 10 September.
