John Lewis, the employee-owned retail group that also operates Waitrose, has paid an annual bonus to its workers for the first time in four years. The 2% bonus comes as underlying profits rose by 6%, signaling a modest recovery for the company after several challenging years.
The retailer refers to its employees as “partners,” reflecting its unique ownership structure. These partners will now share in the profits following improvements in both sales and profitability.
Sales and Profit Performance
For the year ending 31 January, John Lewis recorded sales of £13.4 billion, a 5% increase from the previous year. Profits rose to £134 million, slightly below analyst expectations due to a “subdued market,” according to John Lewis chair Jason Tarry.
Despite the rise in underlying profits, additional costs affected overall results:
- £40 million in increased national insurance contributions
- £13 million in new packaging levies
After factoring in one-off items, including the write-down of outdated technology, the company reported a pre-tax loss of £21 million, compared to a £97 million profit in the prior year.
Return of the Staff Bonus
The 2% bonus marks a significant moment for John Lewis partners, rewarding them after four years without annual payouts. The move underscores the company’s commitment to sharing financial success with its workforce and supporting staff morale.
Outlook for the Retail Group
While the market remains challenging, the return of the bonus highlights John Lewis’s ability to navigate cost pressures and maintain profitability. Leadership remains focused on managing expenses, investing in operations, and continuing to reward partners as part of the company’s long-term employee-owned model.
