Adjusted operating profit for the period was £103 million, down £7 million, with an operating margin of 2.6% compared to 2.8% from last year. Waitrose said this reflected the extra cost of running its operations through the heatwaves, as well as being a deliberate choice to increase investment in loyalty and lower prices, which it said had positively affected customers’ experience of the brand.
During the first half of the year Waitrose highlighted that it had invested a further £20 million in permanently lower prices, and said it would invest a similar amount in late September 2026. It said that this would take its total investment since 2023 to over £180 million.
Sales of the Waitrose No.1 range increased by 15%, while online sales grew 11% as the retailer launched more than 540 new own-brand products across its ranges. It also acquired three new sites, which are set to open in late 2026.
Waitrose went on to highlight that it had started work on its South West distribution centre in Avonmouth, which it said will create more than 550 jobs and serve around 50 stores from early 2027.
Total loss before tax across all operations was £89 million, compared to £34 million last year, while total John Lewis Partnership sales grew by 2% to £6.3 billion.
“Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business.”
Jason Tarry, chairman of the John Lewis Partnership, said: “Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business. Partnership sales grew, customer satisfaction remains strong and the stores we’ve transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis.
“We are managing the business with discipline and have chosen to keep investing in our customers, Partners and the long-term strength of our brands. While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength. As in every year, our profit is earned in the second half, so our focus now is on serving customers brilliantly through our peak trading period. I’m grateful to all our Partners for everything they continue to deliver.”
