John Lewis profit uplift forecast sparks staff bonus debate

John Lewis Partnership staff could miss out on their bonuses for another year despite analysts predicting the department store chain’s annual profits have tripled.

The Waitrose owner is likely to report pre-tax profits of £120m, almost three times the £42m it posted last year, according to independent retail analyst Nick Bubb.

However, the figure is shy of the £131m profit target the retailer had set itself. The Telegraph reported in January that the John Lewis and Waitrose brands had “missed their sales targets”.

The retailer’s 65,000 partners will be watching closely to see if the business is handing out bonuses this year.

John Lewis has previously said that it would not issue a bonus to staff unless it reached £150m in pre-tax profits.

Bubb said that if it were to report the forecast pre-tax profits of £120m it “would normally leave room for a small partnership bonus to be declared” but it seemed unlikely given the retailer had also announced an increase to staff pay.

The results on Thursday (13 March) will be the first presentation of new chairman Jason Tarry, who succeeded Dame Sharon White and has been tasked with reviving the Partnership’s fortunes.

John Lewis has been attempting to win back customers it lost during the pandemic by a series of investments, which include modernising its shops, opening new Waitrose supermarkets and introducing Caffè Nero coffee shops in its shops.

The department store chain has previously spoken about the positive impact the return of its Never Knowingly Undersold price promise has had on sales.

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