London commuters faced fresh disruption on the fourth day of strike action, with the Piccadilly Line suspended and the Docklands Light Railway (DLR) also halted. The Piccadilly Line later partially resumed with minor delays between Acton Town and South Harrow, but remained suspended elsewhere, while the DLR was expected to return to full service later in the week.
In the retail sector, John Lewis Partnership reported that its losses almost tripled to £88 million. The partnership, which owns John Lewis and Waitrose, posted a loss before tax and exceptional items of £34 million for the six months to 26 July, widening from a £5 million loss in the same period last year. It blamed the Extended Producer Responsibility (EPR) packaging levy, higher National Insurance contributions, and additional investment for the deepening loss.
Despite the challenging first half, the partnership said it remained “well positioned” to deliver full-year profit growth, with the final quarter seasonally important because of strong Christmas trading. Retail analyst Nick Bubb predicted that John Lewis would grow its full-year pre-tax profits before exceptional items to £200 million, from £126 million a year earlier, although the first half was “badly affected” by the surprising £29 million cost of the new packaging levy.
Victoria Scholar, head of investment at Interactive investor, suggested John Lewis may have benefited from disruption at rival Marks & Spencer following a cyber attack in April. She noted that Waitrose had been a bright spot, continuing to prioritise quality while focusing on competitive pricing, particularly against Aldi and Lidl. Robyn Duffy, consumer markets senior analyst at RSM UK, added that Waitrose’s performance was a key driver, benefiting from a renewed focus on its food proposition and more effective adoption of technology.
Duffy also highlighted that John Lewis was successfully drawing in customers through revitalised physical stores, meaningful brand partnerships, and the reintroduction of its “Never Knowingly Undersold” price matching strategy. New collaborations with brands like Waterstones were designed to increase dwell time and boost add-on sales, while the announcement that Topshop would return to UK high streets tapped into current nostalgia trends.
