John Lewis reinstates £46m staff bonus amid record sales
It comes as John Lewis achieved the highest sales in its history at £4.9bn
The John Lewis Partnership has said its staff will be able to share from a £46m bonus pot after reporting a profit before bonus, tax and exceptional items of £181m, 38% higher than 2020/21 and 159% higher than two years ago.
When including exceptional items and the £46m bonus, its loss before tax was £26m, £491m or 95% better than its loss in 2020/21.
It comes as John Lewis achieved the highest sales in its history at £4.9bn, which was up 8% against last year. Against two years ago, John Lewis like-for-like sales were up by 10%.
Meanwhile, Waitrose like-for-like sales were up by 1% to £7.5bn against last year and up 11% on two years ago.
The group also cut costs by £170m in the period, citing cost-cutting as a key priority and major factor behind its profit growth compared to last year.
This did however mean reducing management roles in stores as well as reducing central teams. It also closed eight John Lewis stores and a delivery hub in the year-long period. The group said these were “necessary decisions to ensure the Partnership is sustainable in the future”.
Looking ahead, it plans to invest £119m in John Lewis shops, digital services and distribution capabilities. It will also commit £500m to “give John Lewis customers everyday quality and value” alongside a £55m investment to complete a further 23 major refurbishments of Waitrose stores and £72m investment in digital services and distribution.
