The John Lewis Partnership has announced the return of its annual staff bonus, ending a four-year hiatus for the 69,000-member workforce. The 2% payout follows a year where underlying profits rose by 6% to £134 million. This move signals a return to the partnership’s roots of profit-sharing, even as the company navigates a difficult economic landscape.
The retailer has spent the last few years in survival mode, closing 16 department stores and at least 20 Waitrose branches. The bonus, which was once the envy of the retail world, had disappeared as the company dealt with the fallout of the pandemic and the shift to online shopping. This year’s payout is a sign that the group’s multiyear turnaround plan is beginning to bear fruit.
Total sales for the year reached £13.4 billion, with both the department store and supermarket divisions seeing growth. However, the final pre-tax figure was a loss of £21 million, driven by £13 million in packaging levies and £40 million in national insurance hikes. Despite these costs, the board felt that the underlying growth justified a return to staff bonuses.
Chairman Jason Tarry has emphasized a “retail-first” strategy, which includes an £800 million investment in store upgrades. This has already seen more than 20 Waitrose stores and five John Lewis shops refurbished. Additionally, the company is diversifying its fashion appeal with new brands and expanding its financial services to create new revenue streams.
The group has officially halted its ambitious plan to enter the residential rental market, choosing instead to focus all its energy on retail. Management expressed a cautious outlook for the coming year but promised to continue seeking ways to operate more efficiently. The return of the bonus is a key step in rebuilding the partnership’s unique internal culture.