The John Lewis Partnership has tripled its annual profits, yet workers will not receive a bonus for the third straight year. The company is prioritizing investment over payouts, aiming to strengthen its business for the future.
Sales for the retail group, which owns John Lewis and Waitrose, rose 3% to £12.8 billion in the 12 months to January 25, 2025. Underlying profit jumped from £42 million to £126 million. However, instead of offering bonuses, the company plans to invest £600 million in its stores and supply chain.
Chair Jason Tarry emphasized the need for long-term stability. “These are solid results,” he said. “Our customers appreciate our investment in quality, value, and service. We’ve made progress, but there’s more to do.”
John Lewis has skipped the staff bonus in four of the past five years. The company struggled financially during the pandemic when it had to close stores. As part of its turnaround strategy, it shut 16 department stores and more than 20 Waitrose locations.
Despite challenges, John Lewis stores stabilized, reporting £4.8 billion in sales. A 3% decline in the first half was balanced by a 3% gain later, boosted by a strong Christmas season. However, operating profit plunged to £45 million from £689 million after the return of its price-matching policy.
Waitrose performed better, with sales climbing 4.4%. The upmarket grocer sold 2.6% more products by refining prices and fixing IT issues. Profits increased by £122 million to £227 million, thanks to smarter staff scheduling.
John Lewis expects further profit growth despite economic challenges. It aims to reach £400 million in profits by 2028. The company says its brands need “considerable catch-up investment” to improve stores and logistics.
Many employees had hoped for a bonus this year, especially with a new chair in place. Instead, John Lewis raised wages by 7.4% last week, bringing minimum pay to £12.40 an hour.
The company stressed the importance of long-term investment. “As employee-owners, we must ensure the partnership remains strong. At this stage, investing in our business and staff pay is the right choice,” the statement read.
John Lewis remains focused on the future, strengthening its business for the years ahead.
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