Employees at the John Lewis Partnership are set to receive a 2% bonus, the first such payment in four years. The payout comes after the group reported a 5% increase in annual sales to £13.4 billion. While the bonus amounts to about one week’s salary, it represents a significant cultural moment for the employee-owned retailer after a long period of austerity.
The partnership’s bonus system had been under severe pressure, dropping to its lowest levels in decades before being cut entirely during the pandemic. Last year, the company chose not to pay a bonus despite a profit surge, a move that sparked an open letter of protest from staff. This year’s 2% payout is seen as a compromise that rewards workers while maintaining financial discipline.
Underlying profits rose to £134 million, although the company reported a loss before tax of £21 million due to one-off charges. These charges included the costs of writing down outdated technology and paying an additional £53 million in various taxes and levies. Despite this, the group’s cash position improved, allowing for the bonus and continued business investment.
The partnership is currently investing £800 million into its physical estate, with 25 stores already having undergone significant refurbishments. The company has also moved to modernize its fashion offering by launching the Topshop brand in its department stores. These moves are part of a broader effort to attract new customers and boost satisfaction across both the John Lewis and Waitrose brands.
As part of a strategic shift, the company has abandoned its goal of building 10,000 rental homes to focus exclusively on its retail and financial services. Chairman Jason Tarry stated that the partnership’s long-term plan is yielding growth in customer numbers. While the market remains challenging, the company intends to maintain its disciplined approach to financial management.