John Lewis pays first bonus since 2022 amid revenue increase

This is the first time that John Lewis Partnership staff have received a bonus since 2022, when the pay top-up was 3%. The retailer said that the 2% bonus equates to an extra week’s pay for all of its partners. 

It came amid a 5% rise in partnership sales, with combined revenue at its brands in the 53 weeks to January 31, 2026, landing at £13.4bn. Operating cash flow was up by £63m to £595m. 

Profit before tax, bonus, and exceptional items also increased by 6% to £134m. The retail group said this was despite several cost headwinds, including £40m in higher national insurance contributions and £13m on the Extended Producer Responsibility packaging levy. 

The partnership also pointed to a cautious consumer, with items on promotion representing a higher share of its revenue mix. 

“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 chairman 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.”

Despite the improved adjusted margin, the partnership posted a loss before tax of £21m, having posted a profit of £97m in the previous year. It attributed this to exceptional charges of £120m as it wrote down legacy technology systems. 

John Lewis has been on an investment push, increasing spending on stores, supply chain, technology, and brand initiatives by 26% during its 2025-26 trading year. It said this helped increase participation in its loyalty schemes, with My Waitrose growing by 6% and My John Lewis memberships up by 10%. Both brands also received their highest-ever net promoter scores.

Sales at Waitrose grew by 7%, with volumes up by 3%. Online sales at the premium supermarket were also up by 13% year over year, reflecting higher customer enthusiasm for grocery delivery. 

Department store John Lewis posted sales growth of 3%, with revenues of £4.9bn. Adjusted operating profit of the brand increased by £13m. 

The retailer said it had received record demand for personal styling and nursery appointments. Its national partnership with Topshop was one of 200 new brand launches across the year.

Earlier this week, John Lewis announced an AI push, saying that it would become one of the first UK retailers to “fully embrace the new era of retail”.