The John Lewis Partnership (JLP) has revealed a 73% rise in annual profits but ruled out a staff bonus for the third year in a row.
The employee-owned business, behind John Lewis department stores and Waitrose supermarkets, said earnings over the 12 months to January came in at £97m – up from the £56m achieved in the previous year.
Group sales rose 3% to £12.8bn, driven by Waitrose, in a year when the department store chain restored its ‘Never Knowingly Undersold’ price promise that was scrapped in 2022.
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New chair Jason Tarry signalled a further £600m investment in its operations on the back of the improved profit performance and a focus on regular pay for staff, known as partners, over a one-off reward.
A 7.4% wage rise was revealed earlier this month as the business moved to bolster retention amid the barren spell for annual bonuses that has only seen one paid out over the last five years.
The last financial year marked only the fourth time since 1953 that JLP had not awarded a bonus.
Mr Tarry, who succeeded Dame Sharon White six months ago amid a post-pandemic turnaround plan that included the closure of underperforming stores and thousands of job losses, said “careful consideration” had been given to the bonus.
Jason Tarry. Pic: JLP
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He told the group’s 69,000 partners: “These are solid results, which show that our customers are responding well to our investments in quality products, value and service.
“We have made good progress with much more still to do.
“Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands.
“Our focus will be on enhancing what makes these brands truly special for our customers.
“This will involve considerable catch-up investment in our stores and supply chain.”
Mr Tarry later told the PA news agency that he could not guarantee the return of a bonus in the current financial year as the wider economic backdrop would “be challenging for our customers and our business”.
JLP is set to take a £45m hit from the increase in employer national insurance contributions next month.
Mr Tarry said that the hit would not be accounted for through price rises but cost savings and growth.
