The owner of John Lewis and Waitrose has tripled its annual profits, but employees at the staff-owned retail group will go without a bonus for the third consecutive year.
The John Lewis Partnership reported a 3% rise in group sales to £12.8bn for the year ending 25 January 2025, with underlying profit increasing from £42m to £126m. However, the company opted to prioritise investment over bonuses, committing £600m to business transformation, including upgrades to stores and its distribution network.
Jason Tarry, chair of the John Lewis Partnership, stated: “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 approximately 69,000 people last year, has now skipped staff bonuses in four of the last five years. This follows significant losses during the Covid pandemic, when store closures during lockdowns severely impacted the business.
As part of an ongoing turnaround strategy, the group has closed 16 department stores and at least 20 Waitrose outlets, while also cutting thousands of head office jobs.
On Thursday, John Lewis reported that department store sales remained steady at £4.8bn. A 3% decline in the first half of the year was offset by a 3% rise in the second half, driven by a strong Christmas season. However, operating profit for the chain fell sharply to £45m from £689m the previous year, following the reintroduction of its “never knowingly undersold” price-matching policy.
Meanwhile, Waitrose sales increased by 4.4%, with product volumes up 2.6% after the supermarket refined its pricing strategy and addressed IT issues to ensure better stock availability. Profits for the grocery chain rose by £122m to £227m, aided by “productivity improvements,” including more efficient staff scheduling.
Looking ahead, the group expects to further increase profits despite anticipating ongoing macroeconomic challenges. It has previously set a target of reaching £400m in profits by 2028.
