Zarah ChoudharyJohn Lewis Partnership has prioritised investing £114m in employee pay and up to £600m in business transformation over awarding a staff bonus this year, despite a 73% rise in profit before tax to £97m.
The retailer said the decision followed “careful consideration” and was necessary to support long-term growth and financial stability.
The company’s financial performance improved significantly over the year, with profit before tax and exceptional items tripling from £42m to £126m.
Sales increased by 3% year-on-year to £12.8bn, and operating profit margin rose to 2.0%, up 0.9%.
Cash generated from operations reached £532m, up by £99m, while total liquidity closed at £1.5bn.
The group also repaid a £300m bond in January 2025, bringing its borrowing levels to their lowest since 2002.
Jason Tarry, chairman of the John Lewis Partnership, said: “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.”
The company confirmed that despite the strong financial results, it would not be awarding a bonus this year, stating.
The company said: “We’ve consistently said that at this point in our transformation, this is best served by investing in our retail businesses and in partners’ base pay.
“So after careful consideration, we do not believe it would be right to award a Partnership Bonus this year.”
Overall pay is increasing by £114m in 2025, following a £116m increase the previous year.
Nish Kankiwala, CEO of the John Lewis Partnership, said: “I want to thank all of our Partners for their incredible hard work this year and our customers for their loyalty, both of which led to continued momentum through the year and especially over Christmas.
“Tripling our profit is a significant testament to the progress of our transformation – focused on delighting customers while continuing to deliver efficiency improvements, thereby laying the foundations for long-term sustainable growth.”
Customer numbers grew by 2% over the year, with My Waitrose active members increasing by 7% to 4.6 million and My John Lewis members rising by 11% to 3.7 million.
The company also reported recurring productivity savings of £255m this year, contributing to a total of £667m in savings since 2021, with a target of £900m by January 2026.
Tarry added: “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, underpinned by a strong focus on the core elements of great retail, delivered by our brilliant Partners.
“Our distinct Partnership model stands out as a key competitive differentiator, enabling us to adopt a long-term perspective.
“I am confident with the transformation momentum in the Partnership, we remain well placed to drive further growth in the year ahead and over the longer term – creating a Partnership that our customers and Partners are truly proud of.”
