The John Lewis Partnership has revealed it slumped to a £99 million loss in its first half after facing “unprecedented” cost hikes and cautioned over a “highly uncertain” end to the year.
The retail giant announced a £500 one-off payment to staff as part of a £45 million package to support workers in the cost-of-living crisis, as well as moves to increase the entry level pay for employees by 4%, which will cost it £10 million over the second half.
Details of the payout came as the group revealed widening pre-tax losses for the six months to July 30, from a £29 million loss a year earlier. Dame Sharon White, chairman of the John Lewis Partnership, said: “No one could have predicted the scale of the cost-of-living crisis that has materialised, with energy prices and inflation rising ahead of anyone’s expectations.
“As a business, we have faced unprecedented cost inflation across grocery and general merchandise.”
She added: “We are responding to the cost of living crisis by supporting those who need it and by stepping up our efficiency programme.
“We are forgoing profit by making choices based on the sort of business we are, led by our Purpose – Working In Partnership For A Happier World – by helping our Partners, customers, communities and suppliers.”
