The John Lewis Partnership is set to award its employees an annual bonus for the first time in four years, a move that signals significant progress in the high street giant’s ongoing turnaround strategy.
The retail group, which operates John Lewis department stores and Waitrose supermarkets, confirmed its “partners” will receive a 2 per cent bonus for the financial year ending 31 January.
This decision follows a 6 per cent increase in profits before tax, bonus, and exceptional items, reaching £134 million.
The company also reported a 5 per cent rise in overall sales to £13.4 billion, with both brands contributing to the growth.
However, the partnership recorded a pre-tax loss of £21 million, a stark contrast to the £97 million profit seen a year prior.
This downturn was attributed to exceptional charges, including significant write-downs related to its outdated technology systems.
Despite the positive step for staff, the company maintains a “cautious” outlook for the current financial year, citing a “challenging macroeconomic environment” as a potential headwind.
Jason Tarry, chairman of the John Lewis Partnership, said: “Our multi-year plan to invest in customers and our brands for the long term is working; we have grown customer numbers and achieved record satisfaction.
“Despite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.”
The company’s strategy under the former Tesco UK boss has seen it pump more investment into its stores as JLP renewed its focus in its core retail business.
The firm is currently investing £800 million across its stores as part of a long-term investment.
It has refurbished 23 Waitrose stores over the past year, as well as five John Lewis shops.
It also launched the Topshop brand across all its 32 department stores last month as part of investment into its fashion offer.
Last month, Mr Tarry also pulled the plug on the partnership’s plans to build around 10,000 rental properties in order to focus further on retail.
It abandoned the build-to-rent ambitions launched under previous chairwoman Dame Sharon White in 2020, blaming higher costs and caution in the property market.
