The retail group, which operates as a partnership, is made up of John Lewis and Waitrose. Reported sales were £3.6 billion and £2.1bn, down 5% and up 3% year-on-year for Waitrose and John Lewis respectively.

Commenting on the loss, John Lewis’ chairman, Sharon White, 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.”

However, she added: “It is not unusual for us to make a loss in the first half of the year - we have done so in three of the last four half years. Our trading is heavily skewed to Christmas with most of our profits coming in the last quarter of the year.”

As for the future outlook, Ms White said: “The outlook is uniquely uncertain. We believe we are well placed to navigate the current inflationary headwinds. First, we have a strong balance sheet, which helps us navigate through trading volatility with total liquidity at £1.5bn (cash of £1.1bn and facilities of £0.4bn).

“Second, the loyalty of our customers and a deep understanding of their changing habits and needs. Third, the dedication of our Partners who provide great service for our customers.”

“A successful Christmas is key for the business given the first half. We will need a substantial strengthening of performance, beyond what we usually achieve in the second half, to generate sufficient profit to share a Partnership Bonus with Partners. Much will depend on the wider economic outlook and consumer sentiment.”

To assist partners, the group has announced that it will be making a one-off £500 payment to all full-time partners (pro-rated for part-time partners). It will also be providing free food at work over the winter period. And lastly, a 4% increase has been made to entry-level salaries. The increase in pay will cost £10 in H2.

Ms White concluded: “Time and again we have been tested as a Partnership. We have always come through - and stronger - by being mindful of the challenges but also open to new opportunities. We will do so again.”