John Lewis has reported that its losses more than doubled in the first half of the year, as the department store and Waitrose owner warned that rising employment costs were weighing on the business.
The employee-owned retailer recorded a loss of £89 million for the six months to 1 August, compared with £34 million during the same period last year.
The group blamed the deterioration on higher costs, including increased National Insurance contributions, adding to pressure on retailers already facing subdued consumer spending and intense competition.
The figures are likely to add to concerns over the impact of Labour’s business tax measures on large employers. John Lewis chairman Jason Tarry has previously warned that higher taxes were creating a significant headwind for the partnership as it invests in its department stores and supermarkets.
John Lewis has been pursuing a multi-year recovery plan aimed at improving the performance of both its department store chain and Waitrose. The group has continued to invest in its brands and customer experience despite the difficult trading environment.
However, the latest losses underline the challenge facing the partnership as it absorbs higher payroll costs while trying to remain competitive on prices.
