John Lewis customers are cutting back on their spending because of the rising cost of living.
Customer spending was lower than last year, according to the retailer.
In the first half of the year, the company reported a loss of almost a billion dollars.
Dame Sharon White said the company had faced unprecedented cost inflation.
She said customers were less likely to splash out on big ticket items and were more likely to spend their money on dining out and holidays.
Dame Sharon said that no one could have predicted the scale of the cost of living crisis.
"As a business, we've faced unprecedented cost inflation."
She said that it was not unusual for the John Lewis Partnership to report a loss in the first half of the year as its trading is skewed towards Christmas.
The partnership lost £29 million in the first half of last year.
A combination of rising wholesale prices for goods not being passed on to customers, households cutting back on spending, and the "unwinding" of Covid shopping habits caused the company's losses this year.
People were shopping for vacations at John Lewis. Revenue from its home and technology ranges declined.
The company said the impact of the rise in the cost of living was evident in patterns of spending, with sales of its own-brand items rising 28% and energy saving goods, such as air fryers and smart thermostats, increasing.
Dame Sharon said the outlook for the rest of the year was uncertain because of the cost of living crisis and the impact on discretionary spending.
She said a successful Christmas was important for the business and that a bumper festive period beyond previous years was needed to be able to pay staff their usual bonus.
H&M reported lower-than-expected quarterly sales as shoppers tighten their belts, while DFS Furniture reported a slump in profits due to a dip in consumer spending.
Food prices have been increasing around the world following Russia's invasion of Ukraine, which has been one of the factors pushing up prices at supermarket tills.
The Bank of England is expected to keep raising interest rates in order to control inflation.
Dame Sharon said that wage inflation was caused by an exodus of older workers from the workforce.
She called on the government to find a way to get more older people back into work.
Since the start of the Covid-19 outbreak, one million people have left work in the UK, with a record high number of vacancies.
Employers who want to attract and retain staff are under pressure to raise wages.
John Lewis is one of the stores that will be closing on Monday.
All Rights Reserved © 2024
