John Lewis Partnership pays first annual staff bonus in four years
John Lewis Partnership has paid a staff bonus for the first time in four years following an improved performance in the 53 weeks to 31 January.
Staff received a bonus of 2%, equivalent to an extra week’s pay.
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 partnership said profit growth was tempered by £53 million in additional tax headwinds comprising £13 million from the new Extended Producer Responsibility packaging levy and £40 million from higher National Insurance Contributions. There was also a higher promotional mix as customers spent more cautiously ahead of peak trading.
After one-offs, including the write-down of old technology, the partnership recorded a loss before tax of £21 million.
John Lewis continued to execute its customer-focused omnichannel strategy in the period, which helped sales to rise by 3% to £4.9 billion. Adjusted operating profit increased by £13 million to £58 million with operating margin improving 32 bps to 1.6%.
Meanwhile, Waitrose grew its sales by 7% to £8.5 billion as it attracted 5% more shoppers than two years ago and its highest recorded Net Promoter Score. Adjusted operating profit increased by £29 million to £256 million as operating margin improved by 16 bps to 3.2%.
Looking ahead, the partnership said it remains cautious in its outlook for trading in 2026/27 but will continue to invest in its retail-first strategy as it makes more progress in its multi-year transformation.
Tarry said: “There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our partners to improve the experience for our customers.
“I’m really grateful for the commitment and passion our partners bring and, alongside our continued investment in partner pay, we’re pleased to be in a position to award a 2% partnership bonus. We remain on track to make further progress this year.”
