John Lewis restores bonus for staff amid progress – Daily Business

John Lewis is investing in the group (pic: Terry Murden / DB Media Services)

Staff at the John Lewis Partnership will receive an annual bonus for the first time in four years after significant progress on the group’s turnaround.

The retailer, which operates the John Lewis department stores and Waitrose supermarkets, said its employees, or “partners”, will receive a 2% bonus for the 53 weeks to 31 January.

Profits before tax, bonus and exceptional items rose by 6% to £134 million on a 5% increase in partnership sales to £13.4bn.

However, it reported a pre-tax loss of £21m, from a £97m profit a year earlier, after exceptional charges of £120m (2024/25: £29m) such as write-downs linked to its legacy tech systems.

During 2025/26, the company invested 26% more than the prior year in its stores, technology, supply chain and wider brand initiatives. 

It is investing in John Lewis Money and during the year it secured regulatory authorisation as a credit and insurance broker. It withdrew from its Build-to-Rent property business in response to significant changes in the economy since entering this market.

Operating cash flow improved by £63m to £595m, supporting increased investment in the business and Partners, with £108m allocated to pay increases and a 2% Partnership Bonus. Liquidity strengthened to £1.6bn, enabling continued self-funded investment.

Waitrose sales grew 7% to £8.5bn with an adjusted operating profit of £256m, while John Lewis sales increased 3% to £4.9bn with an adjusted operating profit of £58m.

The company said it is cautiously optimistic about the trading outlook for 2026/27, confident in its retail-first strategy and transformation plan.

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.”

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