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The owner of John Lewis and Waitrose revealed that half-year profits had collapsed 98.8% as he struggled against "tough times" and the most promotional market in nearly a decade.
The John Lewis Partnership (JLP) posted underlying pretax income of £ 1.2 million as at July 28.
He declared on a statutory basis that the half-year profits had fallen from 80.5% to 6 million pounds sterling.
JLP said earnings continued to be dampened by stiff competition, the cost of new stores and computer changes, while keeping prices low despite inflation and offering unprecedented price levels .
(Image: PA)
The British giant has warned that it continues to expect the profits of the 2018-19 financial year to be "significantly lower" as well.
London-based JLP is an employee-owned company that operates John Lewis stores, Waitrose supermarkets and its banking services.
Sir Charlie Mayfield, president of the John Lewis Partnership, said: "These are tough times in the retail business."
He added: "The earnings before exceptional are always lower and more volatile in the first half than the second half.
(Image: UGC TMS)
"This is particularly the case during the semester, driven primarily by John Lewis & Partners, where gross margin has been reduced on what has been the most promotional market we've seen in almost a decade.
"Given the level of uncertainty faced by consumers and the economy, partly because of the Brexit negotiations, the forecasts are particularly difficult, but we anticipate that the annual benefits of the Partnership will be lower overall. to those of last year. "
He told BBC Radio 4's Today program that "the department store is not dead".
He added, "We need fresh heads and will continue to focus on the customer."
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The British Brexit leader went to war with John Lewis after the announcement, suggesting that the partnership should "take responsibility" for his situation and reject his "mistake" by pointing the finger at the exit of the EU .
Tory Dominic Raab said: "I think there will be the temptation of some companies that are not going to blame Brexit so well and I think that's a mistake."
He added with astonishment: "It is rather easy for a company to accuse Brexit and politicians rather than take responsibility for their own situation."
The online reaction faded back. The Twitter user, Andy Shaw, wrote: "I hope John Lewis will sell ironic detectors – because mine has just exploded."
Eliose Todd of the anti-Brexit group Best For Britain described Raab's behavior as "pathetic," adding, "Getting to know John Lewis is the most stupid thing Raab ever did since he was criticized. "
He came as Cabinet ministers arrived at Downing Street this morning for a special meeting on plans for a Brexit without agreement.
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