News Story

Workers at the John Lewis Partnership are set to receive an annual bonus for the first time in four years on the back of stronger profitability as the high street firm progressed further with its turnaround.

The retail giant, which runs John Lewis department stores and Waitrose supermarkets, said its employees which it calls partners will receive a 2% bonus for the year to January 31.

It came as the business said profits before tax, bonus and exceptional items rose by 6% to £134 million.

But it reported a pre-tax loss of £21 million, down from a £97 million profit a year earlier, after being impacted by exceptional charges such as write-downs linked to its legacy tech systems.

Sales across the business rose by 5% to £13.4 billion for the year, with growth across both brands as it pushed forwards with its major turnaround strategy.

However, the company said it is “cautious” in its outlook for the current financial year amid a “challenging macroeconomic environment”.

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.”