Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, comments on John Lewis’s full-year results: “As promised at the half-year stage, John Lewis delivered full-year profit growth for FY26. Another year of profitability suggests the Partnership’s multi-year turnaround strategy is gaining traction for the partner-owned retailer. This has allowed the business to bring back its much lauded Partner bonus of 2% - equivalent to an extra week’s full pay.

“Regulatory costs weighed heavily on the cost base in the first half of the year along with a higher promotional mix as consumers spent cautiously around the lead up to the Budget, impacting the run up to Christmas. However, despite this, the second half of the year was still stronger when compared to H1 and helped to bring full year earnings firmly back into the black.

“Strategically, the Partnership remains focused on its core retail brands, John Lewis and Waitrose, where significant investment is underway. This focus was reinforced by its decision to withdraw from its Build to Rent property venture, citing a shift in economic conditions. Instead, the business is moving towards a more asset-light model, investing in John Lewis Money to support its retail proposition.

“As volatility returns, John Lewis needs to remain agile. If tensions in the Middle East persist, the impact could be felt across consumer confidence in the near term and inflation further down the line, potentially intensifying cost-of-living pressures. Over the longer term, the Middle East’s role in global fertiliser production – around a quarter of supply – could also have implications for grocery costs, particularly given Waitrose remains a key growth driver. For now, the situation remains fluid, but a prolonged conflict could reinforce the need to lean on its ‘Never Knowingly Undersold’ credentials, while keeping its food proposition relevant to budget-conscious consumers.”

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