John Lewis Partnership delivers tripled profits as it continues its transformation
What: The John Lewis Partnership reports 73% profit growth to GBP 97 million while investing GBP 114 million in staff pay, demonstrating successful balance between business performance and employee welfare.
Why it is important: The results validate the strategy of focusing on core retail operations over diversification, while showing how retailers can balance profit growth with significant investments in their workforce.
The John Lewis Partnership has achieved remarkable financial improvement, with pre-tax profit before exceptional items tripling to GBP 126 million and overall pre-tax profit rising 73% to GBP 97 million. Total sales increased by 3% to GBP 12.8 billion, driven primarily by Waitrose's strong performance, where sales grew 4.4% to GBP 8 billion with volumes up 2.6%. The supermarket chain's success stems from strategic investments in quality food offerings, competitive pricing, and technological improvements. While John Lewis department store sales remained stable at GBP 4.8 billion, the company has maintained its focus on value through initiatives like the Never Knowingly Undersold promise, enhanced customer service, and improved product ranges. Despite the strong financial performance, the partnership continues its bonus freeze while investing GBP 114 million in partners' pay, reflecting a strategic shift towards regular staff support rather than annual bonuses. This approach demonstrates the company's commitment to balancing business growth with employee welfare.
IADS Notes: The John Lewis Partnership's tripled profits reflect a successful transformation journey documented throughout the past year. As reported in March 2024, the company made a decisive return to core retail operations, abandoning diversification plans and announcing a GBP 542 million investment program. This strategy gained momentum in October 2024 with an additional 800 million commitment to store renovations, particularly in beauty departments, which drove a 7% growth in the category. Under Peter Ruis's leadership, as detailed in February 2025, the revival of the "Never Knowingly Undersold" pledge, enhanced by AI technology, has proven particularly successful in driving customer engagement. The latest results validate this retail-focused approach, with Waitrose's 4.4% sales growth demonstrating the effectiveness of investments in quality food propositions and technology. The March 2025 announcement of a GBP 114 million investment in employee pay, replacing traditional bonuses with monthly support, shows how the Partnership is balancing business transformation with its unique employee-owned structure, marking a significant evolution in retail employment practices.
