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The owner of John Lewis and Waitrose has tripled its annual profits but workers at the staff-owned retail group have missed out on a bonus for a third year in a row.
The John Lewis Partnership said group sales rose 3% to £12.8bn in the 12 months to 25 January 2025, as underlying profit rose from £42m to £126m. However, the company said it was prioritising investment over the bonus with plans to spend £600m on transforming the business, including investment in stores and its distribution network.
Jason Tarry, the chair 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 retailer, which employed about 69,000 people last year, has now skipped the bonus to workers in four out of the last five years, after diving to a loss during the Covid pandemic when it was forced to close all stores during lockdowns.
The group is in the midst of a tough turnaround plan, in which 16 department stores and at least 20 Waitrose outlets have been closed and thousands of head office staff jobs cut.
On Thursday, John Lewis said sales at its department stores had remained steady at £4.8bn after a 3% fall in sales in the first half of the year was offset by a 3% rise in the second half with a strong Christmas. However, operating profit for the chain slumped to £45m, from £689m a year before, after it reintroduced the “never knowingly undersold” price-matching promotion.
Waitrose sales rose 4.4%, as the upmarket grocery chain sold 2.6% more products after sharpening its prices and ensuring fewer gaps on shelves by resolving IT problems. Profits rose by £122m to £227m as a result of “productivity improvements”, including more careful allocation of staff working hours.
The group said it expected to increase profits further in the year ahead despite expecting “the macroeconomic environment to continue to be challenging for our customers and our business”. The group has previously said it aims to make profits of £400m by 2028.
Tarry said the two brands required “considerable catchup investment in our stores and supply chain, underpinned by a strong focus on the core elements of great retail”
However, he 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.”
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It had been hoped that Thursday’s annual results, the first presented by the new chair and former Tesco executive, Tarry, after six months in the role, would include an annual bonus for workers, who are known as partners because they jointly own the business.
However, John Lewis is instead focusing on upgrading its stores and improving weekly pay for its staff, having announced a 7.4% pay rise last week to a minimum of £12.40 an hour.
The group said in a statement: “As employee-owners, we have a shared responsibility to ensure the partnership is sustainable over the long term. 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.”
