John Lewis and Waitrose staff have been awarded their first bonus since 2022 after the retail business posted a 5% rise in revenues.
Profit before tax, bonus, and exceptional items at the John Lewis Partnership increased by 6%, while operating cash flow increased by £63m.
The partnership swung to a pre-tax loss of £21m, which it attributed to an exceptional charge of £120m for the write-down of legacy technology systems.
“There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our partners to improve the experience for our customers,” said John Lewis Partnership chair Jason Tarry.
“I’m really grateful for the commitment and passion our partners bring and, alongside our continued investment in Partner pay, we’re pleased to be in a position to award a 2% Partnership Bonus.”
That 2% bonus comes alongside a £108m investment in staff pay and equates to a week’s pay for staff. It is also the first time the retailer has offered a bonus since its 3% pay top-up in 2022.
Bonuses used to mark a big rise in earnings for staff at the partnership, reaching nearly a quarter of pay (24%) in 1979, 1987, and 1988.
2017 saw the partnership’s lowest bonus as a portion of annual salary in 63 years, when 6% was handed out to employees. The bonus has never been as high as that since then.
After the huge impact of Covid-19 on the business, the partnership made the decision to forgo the bonus for the first time since 1953. It was last suspended in the wake of the Second World War.
Staff have missed out on bonuses for four of the last six years. Last year, Tarry said he wanted to reinstate the bonus to staff as soon as possible. He has made good on that promise in just one year.
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