John Lewis profits jump but no staff bonus again

Retailer John Lewis has said its staff will not receive a bonus for the third year in a row, despite reporting a jump in annual profits.

The employee-owned retail partnership, which also includes the Waitrose supermarket chain, said profits last year rose by 73% to £97m.

However, it has not restored the staff bonus, saying its wants to invest in its business and workers' pay instead.

The John Lewis Partnership employs about 73,000 people, and earlier this month it said shop workers would receive a 7.4% pay rise this year.

The results are the first under the partnership's new chairman, Jason Tarry.

"We have made good progress with much more still to do," Mr Tarry said.

"Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands."

Waitrose sales grew 4.4% to £8bn, and it sold more of its own-brand products.

John Lewis said that while it expected the economic environment to be "challenging for our customers and our business" in the year ahead, it was still confident it could push up profits.

This is the fourth time in five years that John Lewis has not paid a bonus.

The string of freezes started in 2020 - the first time it had scrapped them since 1953 - after it was hit by Covid lockdown store closures.

Charles Allen, a Bloomberg Intelligence analyst, said the lack of bonus "had been signalled".

"I also think we have to put in the light of another big pay raise that's coming through in line with the minimum wage jump.

"And then of course, although the partners don't see it, you've got a very large rise in employer national insurance as well."