John Lewis employees could be in line for a bonus for the first time in four years, as the retailer pushes ahead with its turnaround strategy.
The payout depends on the employee-owned partnership surpassing a £200 million profit target. According to The Financial Times, the company stated that if profits exceed that threshold, “we would recommend to the board that we pay a bonus.”
The group said it is “aiming to make over £200 million profit” for the year ending January 2026, adding that “to get there we need to keep focused on the right things and deliver our plans.”
New Chairman Jason Tarry is leading the company’s revival following a tough stretch of declining sales and financial losses.
For the year ending January 2025, profit before tax rose to £97 million, up from £56 million the previous year. This marked the company’s second consecutive year of positive earnings, after three years of losses. It expects to grow profits further in the current financial year.
The prospect of a bonus comes amid growing pressure on the company to reinstate staff payouts, as it works to stabilise operations and drive long-term growth.
In recent months, some employees have voiced frustration, publishing an open letter and launching a petition via Organise – a platform supporting worker-led campaigns – calling on management to restore the annual bonus.
They argued that withholding bonuses, even as the company returns to profitability, undermines the principles of the partnership model. The last bonus was paid out for the year ending January 2022.
In response, John Lewis previously said it did not believe awarding a bonus was appropriate, as it focused on reinvesting in the business following a challenging period. The company also pointed out that it had increased staff pay by £114 million earlier in the year.