John Lewis Reports £29 Million Direct pEPR Cost as Half-Year Losses Widen

On 12 September, the John Lewis Partnership announced a £34 million loss (before tax and exceptional items), for the first half of 2025/26, citing the first year of packaging Extended Producer Responsibility (pEPR) as a significant factor.

The company confirmed that pEPR compliance added around £29 million to its cost base. Group revenue rose by roughly 4% to £6.2 billion, but higher operating costs, including employer National Insurance and EPR fees, outpaced that growth.

Key points:

• Waitrose’s operating profit fell, while the John Lewis department-store arm recorded an operating loss.
• Management said the Partnership remains confident of returning to profit by the end of the financial year, supported by efficiency measures and continued investment in customer experience.
• The figures highlight how quickly EPR obligations are affecting major UK retailers, with Year 1 invoices for base fees landing across the sector this autumn.

John Lewis is the latest major business to show the direct financial impact of pEPR as companies adjust to the UK’s new packaging responsibility regime.

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