John Lewis Chair's Salary Soars as Retailer Reduces Workforce
The John Lewis Partnership, which operates the John Lewis department stores and Waitrose supermarkets, has reported a significant pay increase for its chair, Jason Tarry, alongside substantial job reductions. In the year to January, Tarry's basic salary rose by 21% to £1.2 million, up from £990,000 the previous year.
Executive Compensation Details
Jason Tarry, who assumed the role of chair in September 2024, also received an annual bonus of £22,700, equivalent to 2% of his salary, along with other benefits. This brought his total remuneration package to nearly £1.26 million. The details were disclosed in the partnership's annual report. It is noted that Tarry's pay remains below the peak of £1.53 million earned by a predecessor, Charlie Mayfield, in 2015, and the nearly £2 million received by the former Co-op group boss last year.
Tarry's total pay was similar to that of his predecessor, Sharon White, who had a basic salary of £990,000 throughout her tenure and received total packages of £1.12 million in both 2024 and 2023. Notably, the group did not pay annual bonuses in those years.
Workforce Reductions and Business Strategy
Despite Tarry's pay rise, the John Lewis Partnership has cut 3,300 jobs, reducing its total workforce to 65,700 employees from 69,000 a year earlier. This includes 1,800 fewer full-time roles at Waitrose supermarkets and 1,500 fewer at John Lewis department stores. A spokesperson for the partnership attributed the majority of these reductions to natural attrition, with fewer than 0.5% of staff leaving through redundancy.
The partnership has been actively trimming costs, having closed stores, abandoned plans to build rental homes above its sites, and reduced its workforce by 10,700 over the past three years. There were previously considerations to cut up to 11,000 jobs by 2029. In March, the company indicated it would continue seeking operational efficiencies, including increased use of electronic shelf labels and artificial intelligence, though it declined to comment on potential further job losses.
Bonus Payments and Retail Revival
In a positive development for staff, the John Lewis Partnership paid an annual bonus to workers in March for the first time in four years, following a 6% rise in underlying profits. Each employee, including the chair, received a bonus equivalent to 2% of their salary. This move comes as the partnership refocuses on retail fundamentals under Tarry's leadership, with improvements in store environments, product availability, and worker pay.
The firm is investing £800 million across its stores as part of a long-term strategy, having refurbished 23 Waitrose sites and five John Lewis locations over the past year. John Lewis has seen increased footfall, driven by initiatives such as the high street revival of Topshop and the reinstatement of the "never knowingly undersold" pledge. Despite closing 16 department stores in recent years, John Lewis remains the UK's largest department store chain, as competitors like Debenhams and Beales have collapsed or exited physical retail.
Controversies and Challenges
Tarry's tenure has not been without controversy. The partnership faced criticism for letting go of an autistic man who had volunteered as a shelf stacker at a Waitrose branch for years. Additionally, pressure mounted to reinstate an employee of 17 years who was dismissed after confronting a shoplifter attempting to steal Lindt gold bunny Easter chocolates. The employee, Walker Smith, has since been offered a position by the Iceland grocery chain.
The John Lewis Partnership continues to navigate the challenges of the retail sector, balancing executive compensation with workforce management and strategic investments to sustain its operations in a competitive market.
