John Lewis Partnership restores staff bonus as profits climb 6 percent

The UK-based John Lewis Partnership has announced an improvement in its financial performance for the 53 weeks ended January 31, 2026. Partnership sales increased 5 percent to 13.40 billion pounds (17.93 billion dollars), supported by record customer satisfaction scores despite a subdued market environment. The group, which operates Waitrose and John Lewis, reported that profit before tax, bonus and exceptional items rose 6 percent to 134 million pounds.

For the first time in four years, the company's board has approved a Partnership Bonus of 2 percent, equivalent to one week’s pay for all Partners. This follows a 108 million pound investment in base pay for 2026, bringing the total pay investment to 340 million pounds over three years. From April 1, 2026, minimum hourly rates will rise to 13.25 pounds UK-wide and 14.80 pounds within the M25.

John Lewis records sales and margin improvement

The department store division, John Lewis, continued its omnichannel strategy, delivering sales of 4.90 billion pounds, representing a 3 percent increase. Adjusted operating profit for the brand reached 58 million pounds, up 13 million pounds from the previous year. The operating margin for the division improved by 32 percentage points to 1.6 percent.

Customer engagement reached record levels, with John Lewis topping the 2026 UK Customer Satisfaction Index for UK retail. The retailer expanded its product range by launching 200 new brands, including an exclusive national partnership with Topshop. Investment in the estate included major refurbishments in Liverpool and Bluewater, alongside beauty department expansions in Solihull, Welwyn Garden City and Cambridge. To boost availability, the retailer extended its ‘Ship from Store’ service to 28 locations. It also opened six new hospitality venues, bringing its total to 62, to encourage longer customer visits.

Membership in the My John Lewis loyalty programme grew 10 percent during the period.

Partnership's chairman, Jason Tarry, noted that the multi-year plan to invest in customers and brands is working. However, the group has decided to exit its Build-to-Rent property business following economic changes.

The group remains cautious regarding the trading outlook for 2026/27 due to the macroeconomic environment.