John Lewis Partnership, the employee-owned parent company of John Lewis and Waitrose, lost £89 million in the first half of 2026 and has warned it retains a “cautious” outlook for the rest of the year.

The loss is more than double that of last year, which the company said reflected both increased investment into its stores and a “more challenging economic environment”. The partnership invested £246 million in its brands over the period, a 29 per cent increase year-on-year.

Despite the loss, the firm reported that customer satisfaction remained strong, and sales rose two per cent year-on-year. Sales momentum was good at Waitrose, it added, though weaker customer demand for high-value discretionary purchases impacted sales at John Lewis.

The investment programme the Partnership has undertaken includes accelerating its store refurbishment programme, modernising its technology, deploying automation across its supply chain and “evolving” its corporate structure. These investments will pay off in the second half of the year, the Partnership said.

Jason Tarry, chairman of the John Lewis Partnership, said: “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.”

Despite this, the Partnership warned in its outlook that the wider geopolitical and economic landscape has “weighed” on its customers in the first half of the year, and that it remains cautious about the second half to come.

The Partnership continues to work on improvement. On Sunday, the Financial Times reported that the it had embarked on a new turnaround plan titled ‘Rise’ under chairman Jason Tarry, with goals including generating an additional £100 million in profits through a “joined-up” plan for loyalty schemes.

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