Jason Tarry, chair of the John Lewis Partnership, warned of squeezed profits due to “really tough” trading conditions, citing lower sales and higher costs. The company reported a pre-tax loss of £21mn in the year to January, down from a profit of £97mn the prior year, despite 7% sales growth at Waitrose and 3% growth at John Lewis. Tarry emphasized adjusting plans for an “immediate future we weren’t expecting even six months ago,” focusing on margin improvements and store investments.

Rising oil prices from the Strait of Hormuz closure exacerbated inflationary pressures. Internally, Tarry scrapped a rental housing project and prioritized core retail operations, but acknowledged longstanding struggles for department stores. He stressed continuous investment in refurbishments and new Waitrose shops, calling the competitive environment “highly dynamic.” The partnership aims to reinvest cash flow amid ongoing challenges, with half-year results due September 10.