The John Lewis Partnership (JLP) has revealed a 73% rise in annual profits but says staff will receive no 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.
He told the group’s 73,000 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.
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“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.”
