Despite a “subdued” retail climate, the John Lewis Partnership has managed to grow its underlying profits and reward its staff with a 2% bonus. This is the first such payment since 2020, ending a four-year gap that frustrated many of its 69,000 employees. Total sales for the partnership rose to £13.4 billion, reflecting a 5% increase year-on-year.
The return of the bonus is a significant moment for the employee-owned group, which saw its tradition of high payouts erode over the last decade. In the 1980s, partners often saw bonuses exceeding 20% of their salary, but the rise of digital commerce and the pandemic forced the company to prioritize survival over dividends. The 2% payout represents a modest but hopeful restart.
The financial report revealed that the group struggled with rising costs, including £40 million in additional tax contributions. A statutory loss of £21 million was recorded after accounting for one-off expenses like technology write-offs. Independent analysts described the results as “disappointing” compared to earlier forecasts, but the company defended the decision to pay a bonus as a reward for efficiency gains.
Waitrose proved to be the stronger half of the partnership this year, with sales reaching £8.5 billion. The department store side also saw a 29% jump in underlying profit, despite only a modest 3% rise in sales. To keep this momentum, the company has refurbished 25 stores across both brands and introduced new fashion lines to stay relevant.
The partnership’s future strategy appears to be narrowing its focus to its core retail strengths. Chairman Jason Tarry has canceled plans for a 10,000-home rental property portfolio to ensure all capital is directed toward the stores. The group remains “cautious” about the future but is committed to its long-term investment plan to ensure the partnership remains profitable.