Waitrose has delivered a stronger first-half performance, but its growth has not been enough to offset widening losses across the John Lewis Partnership.
Waitrose sales rose 4% to £4.3 billion in the first half of 2026, offering a positive signal for the supermarket business. However, the wider group reported a £124 million loss before tax, highlighting the financial pressure still facing the partnership.
Waitrose growth provides a bright spot
The increase in Waitrose sales suggests that shoppers continue to value the supermarket’s premium positioning, despite continued pressure on household budgets. The result gives the John Lewis Partnership an important area of momentum as it works through a three-year turnaround programme.
However, higher sales do not automatically translate into stronger profits. Rising operating costs can reduce margins even when customer spending improves, particularly in a competitive grocery market.
Why John Lewis losses widened
The partnership attributed its £124 million loss before tax to a combination of high operating costs, weaker consumer demand and the impact of extreme summer heat. These factors affected the broader group at a time when consumers were already becoming more cautious with their spending.
Weaker demand is especially challenging for John Lewis, where customers may delay purchases of furniture, technology and other higher-value products. At the same time, maintaining stores, staff and other operations continues to create significant costs.
A two-speed recovery
The latest figures point to a two-speed recovery within the partnership. Waitrose is benefiting from improved sales, while John Lewis and the group’s cost base remain under pressure. This contrast makes the turnaround more complicated: growth in one part of the business must eventually help support profitability across the whole organisation.
What happens next?
The John Lewis Partnership is continuing its three-year turnaround programme, with the focus likely to remain on controlling costs, improving customer demand and strengthening the performance of each business division.
For Waitrose, the challenge will be to convert sales growth into sustainable profit. For the wider partnership, the priority will be proving that operational improvements can reverse the current losses without weakening the customer experience.
Waitrose’s 4% sales increase is an encouraging development, but it does not yet signal a full recovery for the John Lewis Partnership. The widening £124 million loss shows that high costs and fragile consumer confidence continue to weigh heavily on the group. The next stage of the turnaround will depend on whether Waitrose can maintain its momentum while John Lewis restores demand and improves efficiency.