John Lewis warns of tougher retail conditions ahead of half-year results

John Lewis Partnership chair Jason Tarry has warned employees that trading conditions have worsened, with the retailer preparing for a period of "lower sales and higher costs".

The British retailer shared the update in an internal staff blog seen by the Financial Times, posted ahead of the group's half-year results due September 10. Tarry said the company was reviewing its plans in response to a more challenging environment, while maintaining a focus on protecting margins and managing stock levels instead of heavy discounting.

The comments follow the retailer's full-year results released in March, when department store John Lewis reported a 3 percent increase in sales to 4.9 billion pounds and a 13 million pound rise in adjusted operating profit to 58 million pounds. The wider group, including Waitrose, posted total sales of 13.4 billion pounds, despite a drop in statutory pre-tax results to a 21 million pound loss.

Since becoming chair in 2024, Tarry has pivoted the business' focus towards its core retail operations, with continued investment in John Lewis stores, including new beauty, sports and hospitality concepts.