The John Lewis Partnership has awarded its 69,000 employees a staff bonus for the first time in four years, following a 6 per cent rise in underlying profits. The bonus, equivalent to 2 per cent of salary or about one week's extra pay, will cost the employee-owned group £35m.
Sales across the group, which owns John Lewis department stores and Waitrose supermarkets, rose 5 per cent to £13.4bn in the year to 31 January. Underlying profits increased to £134m, although the group reported a pre-tax loss of £21m after one-off costs including the write-down of old technology.
Chair Jason Tarry described a “subdued market” and said profits were dented by an extra £40m in national insurance contributions and £13m in packaging levies. The group had not paid a bonus in four of the past five years, having slumped to a loss during the Covid pandemic.
Waitrose enjoyed a return to form, with sales up 7 per cent to £8.5bn and operating profit rising almost 13 per cent to £256m. John Lewis stores increased sales by 3 per cent to £4.9bn, with underlying profit up 29 per cent to £58m.
The partnership is in the midst of a turnaround plan that has seen 16 department stores and at least 20 Waitrose outlets closed, along with thousands of head office job cuts. Tarry said the company remained “cautious” on trading but would continue investing in its retail brands and financial services business.
