John Lewis has reported a 73% increase in annual profits, reaching £97 million, yet staff will not receive a bonus for the third consecutive year.

No Staff Bonus Despite Strong Financial Performance

The John Lewis Partnership, which also owns Waitrose, stated that instead of restoring bonuses, it will invest in business growth and employee pay.

Chairman Jason Tarry emphasized the company’s commitment to reinstating bonuses when financially viable, but no specific threshold has been set.

Despite the lack of bonuses, John Lewis announced a 7.4% pay rise for shop workers this year, benefiting its 69,000 employees.

Historic Bonus Freezes Since 2020

This marks the fourth time in five years that John Lewis has withheld staff bonuses. The freeze began in 2020 following Covid-related store closures—the first suspension since 1953.

Retail analyst Charles Allen highlighted that while the absence of bonuses was expected, the company is balancing increased employer National Insurance costs and the minimum wage hike.

Job Losses Expected, But Redundancies Minimized

John Lewis has confirmed that job losses are anticipated in the coming year. However, the company aims to manage this through natural attrition and redeployment rather than mass redundancies.

Employer National Insurance cost increases will add £40 million to business expenses in the next year.

Waitrose Sees Growth, But Challenges Remain

• Waitrose sales grew by 4.4%, reaching £8 billion
• Own-brand products saw increased demand
• Sales performance lagged behind Marks & Spencer during Christmas but outpaced Tesco and Sainsbury’s

Retail analyst Eleanor Simpson-Gould noted that food inflation remains a key concern, urging Waitrose to focus on competitive pricing and premium product offerings.

John Lewis Strategy: AI-Powered Pricing & Recovery Plan

John Lewis is working on a long-term recovery strategy after years of losses, store closures, and job cuts.

Key initiatives include:
✅ AI-driven price tracking to stay competitive
✅ Reviving the “Never Knowingly Undersold” price pledge
✅ Enhancing online and in-store customer experience

Despite economic uncertainty, John Lewis remains confident in further profit growth in the year ahead.