John Lewis Triples Profits, Denies Bonuses Again

The John Lewis Partnership, encompassing John Lewis department stores and Waitrose supermarkets, reported a significant increase in profits to £126 million, up from £42 million, yet its staff will not receive a bonus for the third consecutive year. Despite sales rising by 3% to £12.8 billion, the company is prioritizing investment in business transformation and staff pay, including a recent 7.4% pay raise. This decision aligns with a strategic turnaround plan involving the closure of several stores and job cuts, aiming to enhance long-term growth amid rising competition. Jason Tarry, the new chairman, emphasizes ongoing improvements in product quality and services as a response to customer needs. The bonus freeze began in 2020 due to pandemic-related financial struggles, marking the fourth time since 1953 that the bonus has been scrapped. The company aims to achieve a £150 million pre-tax profit before reinstating the bonus.