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Staff at the\u00a0John Lewis Partnership\u00a0will receive an annual bonus for the first time in four years after significant progress on the group\u2019s turnaround.<\/p>\n
The retailer, which operates the John Lewis department stores and\u00a0Waitrose\u00a0supermarkets, said its employees, or \u201cpartners\u201d, will receive a 2% bonus for the 53 weeks to 31 January.<\/p>\n
Profits before tax, bonus and exceptional items rose by 6% to \u00a3134 million on a 5% increase in partnership sales to \u00a313.4bn. <\/p>\n
However, it reported a pre-tax loss of \u00a321m, from a \u00a397m profit a year earlier, after exceptional charges of \u00a3120m (2024\/25: \u00a329m) such as write-downs linked to its legacy tech systems.<\/p>\n
During 2025\/26, the company invested 26% more than the prior year in its stores, technology, supply chain and wider brand initiatives.\u00a0<\/p>\n
It is\u00a0investing in John Lewis Money and during the year it secured regulatory authorisation as a credit and insurance broker. It withdrew from its Build-to-Rent property business in response to significant changes in the economy since entering this market.<\/p>\n
Operating cash flow improved by \u00a363m to \u00a3595m, supporting increased investment in the business and Partners, with \u00a3108m allocated to pay increases and a 2% Partnership Bonus. Liquidity strengthened to \u00a31.6bn, enabling continued self-funded investment. <\/p>\n
Waitrose sales grew 7% to \u00a38.5bn with an adjusted operating profit of \u00a3256m, while John Lewis sales increased 3% to \u00a34.9bn with an adjusted operating profit of \u00a358m. <\/p>\n
The company said it is cautiously optimistic about the trading outlook for 2026\/27, confident in its retail-first strategy and transformation plan.<\/p>\n
Jason Tarry, chairman of the John Lewis Partnership, said: \u201cOur multi-year plan to invest in customers and our brands for the long term is working; we have grown customer numbers and achieved record satisfaction.<\/p>\n
\u201cDespite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.\u201d<\/p>\n
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