Staff at the UK’s largest employee-owned retailer are set to receive their first bonus in four years, ending a long drought for the partnership’s workforce. The 2% payout follows a year of resilient sales, which climbed to £13.4 billion. This move is seen as a vital morale booster for the 69,000 partners who have navigated a rigorous period of job cuts and store closures.
The partnership has faced a difficult half-decade, with the bonus missing from four of the last five annual reports. This era of austerity was driven by the shift to e-commerce and the catastrophic impact of store shutdowns during the pandemic. In previous years, the bonus was a hallmark of the company’s culture, once reaching as high as 24% of employee wages in the late 1980s.
Despite the positive underlying profit growth of 6%, the company faced several financial headwinds. New packaging levies and increased national insurance costs totaled over £50 million in additional expenses. Furthermore, a one-off tech write-down pushed the final pre-tax figure into a £21 million loss, compared to a profit of £97 million in the previous year.
The group’s turnaround strategy is now showing clear signs of progress in its core divisions. Waitrose saw an operating profit of £256 million, while John Lewis department stores managed to increase underlying profits to £58 million. The partnership is also looking to diversify its revenue streams by expanding its financial services wing alongside its traditional retail offerings.
To maintain this momentum, the company has pledged to invest heavily in its physical presence. With five department stores recently refurbished and a new fashion push underway, the focus is firmly on attracting high-street shoppers. Leadership emphasized that while they are cautious about the future, the primary goal remains sustainable growth and long-term brand investment.