John Lewis Partnership to hand staff bonus for first time in four years

Workers at the John Lewis Partnership are set to receive an annual bonus for the first time in four years on the back of stronger profitability as the high street firm progressed further with its turnaround.

The retail giant, which runs John Lewis department stores and Waitrose supermarkets, said its employees – which it calls partners – will receive a 2% bonus for the year to 31 January.

It came as the business said profits before tax, bonus and exceptional items rose by 6% to £134 million.

But it reported a pre-tax loss of £21 million, down from a £97 million profit a year earlier, after being impacted by exceptional charges such as write-downs linked to its legacy tech systems.

Sales across the business rose by 5% to £13.4 billion for the year, with growth across both brands as it pushed forwards with its major turnaround strategy.

However, the company said it is “cautious” in its outlook for the current financial year amid a “challenging macroeconomic environment”.

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, including major refurbishments in Liverpool and Bluewater, as well as beauty expansions in Solihull, Welwyn Garden City and Cambridge.

It also launched the Topshop brand across all its 32 department stores last month as part of investment into its fashion offer.

Last month, 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.

Earlier this week, John Lewis announced its investment in AI-powered shopping as part of its multi-year transformation programme, aiming to integrate its products into emerging AI discovery platforms.

The initiative will enable John Lewis products to appear to customers seeking inspiration through AI platforms such as Google Gemini and ChatGPT.

The retailer also announced a 90-day pilot on TikTok Shop, marking its latest step into new digital commerce channels. The trial features a curated range of beauty and gifting products, timed to capture demand in the run-up to Mother’s Day.

Products are available for direct purchase through the platform and include a final release of the John Lewis Mother’s Day Beauty Box, featuring items from brands such as Jo Malone London, Augustinus Bader and Estée Lauder.

Strategically, John Lewis said the initiatives are intended to position the brand on platforms where customers increasingly look for product inspiration and discovery, while allowing purchases to be completed within the same environment.

Digital commerce has been a focus for the company for more than two decades. After launching its first online shopping website in 2001, online sales have expanded to represent around 60% of total revenue, supported by its network of physical stores.