A HIGH street stalwart is axing annual company bonuses for the third year running.
Retailer John Lewis Partnership has said it will not pay a staff bonus for the third year in a row despite seeing annual profits rebound higher.
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The employee-owned business, which runs the department store chain and Waitrose supermarket arm, posted a 73% jump in pre-tax profits to £97million for the year to January 25.
On an underlying basis, profits tripled to £126million from £42million a year ago.
But the group said it would not pay out a bonus once again for its workforce of around 73,000 people.
Instead, it will prioritise another £114million in overall pay and up to £600million of investment in the business.
Earlier this month, it was announced that staff would receive a 7.4% pay rise in an effort to improve retention.
John Lewis said this will see the minimum rate of pay climb to £12.40 an hour, and to £13.85 for workers in London.
The pay increases are ahead of inflation, and follow retailers Marks & Spencer, B&Q, Sainsbury’s, Lidl and Costa Coffee, among others, are making similar moves.
Nonetheless, today’s announcement marks only the fourth occasion since 1953 that John Lewis has chosen not to award staff a bonus.
It said: “After careful consideration, we have prioritised this investment over sharing a bonus this year.”
Jason Tarry, who took over as chairman of the John Lewis Partnership from Dame Sharon White last September, said: “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.
“This will involve considerable catch-up investment in our stores and supply chain.”
The group said it expects a further rise in profits in the 2025-26 financial year, despite warning that it expects the wider economic backdrop “to be challenging for our customers and our business”.
Despite the bumper profits, reports last year revealed that John Lewis is considering cutting up to 11,000 jobs across the organisation.
Sources said at least 10% of the Partnership’s 76,000-strong workforce could go across the group’s head office, supermarkets and department stores.
The John Lewis Partnership
AT John Lewis, every employee is a co-owner, known as a Partner.
This unique model means Partners share in the company’s profits and have a voice in how the business is run.
This shared responsibility boosts productivity and job satisfaction, as Partners are invested in the company’s success.
The John Lewis Partnership, encompassing John Lewis department stores and Waitrose supermarkets, was founded in 1929 by John Spedan Lewis, who transferred ownership to a trust for the benefit of employees.
This structure ensures the company prioritises long-term growth and Partner well-being over short-term profits.
Partners have access to various benefits, including subsidised leisure activities and exclusive hotels.
The democratic structure allows every Partner to question the leadership team, ensuring transparency and accountability.
