The John Lewis Partnership has officially reinstated its famous annual bonus, marking the first time in four years that employees have received a share of the profits. Following a 6% rise in underlying profits, the retail giant announced that its 69,000 “partners” will split a £35 million pool. This payout, though modest at 2% of annual salary, signals a significant symbolic victory for the employee-owned business.
The return to profitability comes after a tumultuous period for the high-street staple, which struggled significantly during the pandemic-era lockdowns. For four of the last five years, the bonus was suspended as the company navigated deep losses and store closures. While the payout is a far cry from the double-digit bonuses seen in the 1980s, it represents a turning point in the company’s financial recovery.
For the fiscal year ending January 31, the group reported total sales of £13.4 billion, a 5% increase. Waitrose led the charge with an 8.5% rise in sales, while the John Lewis department stores saw a respectable 3% growth. However, the final pre-tax figures were dampened by £21 million in losses due to technological write-downs and increased tax burdens, including higher national insurance contributions.
The payout is being framed as a reward for staff loyalty during a period of intense restructuring. Under a multiyear turnaround plan, the partnership has closed 16 department stores and dozens of Waitrose locations to lean into a more efficient digital-first model. Chairman Jason Tarry credited “disciplined financial management” for the ability to reward staff despite a “subdued” broader retail market.
Looking ahead, the partnership is shifting its strategy back toward its retail roots, recently abandoning a major plan to develop thousands of rental properties. Instead, the firm is investing £800 million into store refurbishments and brand partnerships, such as the recent launch of Topshop in its department stores. The company remains cautious about the upcoming year but aims to continue its trajectory of cash and profit growth.