John Lewis Partnership has awarded its staff a bonus for the first time since 2022. The retailer reported a 6% rise in underlying profits during its last financial year and announced a 2% bonus equivalent to an extra week's pay.
Key Takeaways
John Lewis Partnership has awarded its staff a 2% bonus for the first time in four years as part of its ongoing turnaround efforts. The retailer reported a 6% rise in underlying profits and a pre-tax loss of £21m due to one-off costs, with sales increasing by 5% across the business.
The partnership, which operates John Lewis department stores and Waitrose supermarkets, scrapped bonuses during the Covid pandemic as part of a major revamp that included closing shops and cutting jobs. Despite reporting a pre-tax loss of £21m due to one-off costs primarily related to write-downs in old tech systems, underlying profits rose 6% to £134m.
Sales across the business increased by 5% to £13.4bn. Waitrose supermarkets saw a higher sales growth of 7%, while John Lewis department stores reported a 3% increase. The company expressed caution for the current year but stated it is in a stronger financial position to navigate the challenging macroeconomic environment.
Richard Hyman, a retail industry analyst, described the bonus as modest but indicative of progress under new leadership. Jason Tarry, former boss of Tesco UK, was appointed chair in 2024 and has been leading efforts to modernize stores, enhance digital platforms, and improve supply chains.
Looking ahead, John Lewis said it remains cautious about the trading outlook for 2026/27 but is confident in making further progress. The company's strategy focuses on investing in customers and brands while managing increased costs such as higher employer national insurance contributions.
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