14 March 2024 , 08:21
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John Lewis Partnership, the retail giant that owns John Lewis department stores and Waitrose supermarkets, has announced a return to annual profit.
However, it also revealed that staff will not receive a bonus for the second year in a row. The company reported pre-tax profits of £56 million for the year up to January 27, compared to losses of £234 million the previous year.
Despite not giving out bonuses, the group plans to increase overall pay for employees by a record £116 million this year. This is only the third time since 1953 that the company has not given an annual staff bonus.
The group managed to cut costs by £88 million last financial year through changes to staff hours and simpler ways of working. Looking ahead, the company plans to boost investment by 70% to £542 million in 2024-25, focusing on updating technology, refreshing shops and simplifying the group.
Reports suggest the group may cut its workforce by 10%, which could mean around 11,000 jobs lost over the next five years as part of plans to save £900 million by 2027-28. The group wants to open new Waitrose shops and make 80 supermarkets look better.
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They also plan to bring in about 80 new brands to their department stores. They said: "Given the significant changes in the economy since we announced our strategy in 2020, we have refreshed our plan. We're simplifying our business and improving productivity to generate stronger performance, from which we will invest to modernise and energise our unique customer offer."
Sharon White, chairman of the John Lewis Partnership, said: "We have made significant progress in the last year to return the business to profitability and delivered results that allow us to increase investment in our retail businesses; we expect profits to grow further this year."
"This shows our plan is working, while we know there's much more to do."
"This year we will unashamedly focus on investing back into our retail businesses for our customers, including opening new Waitrose shops and continuing to modernise our brand offering in John Lewis, while prioritising pay for our Partners."