Profits expected to surge at John Lewis, yet staff bonuses in question

A new forecast has suggested that John Lewis could be expected to reveal a surge in profit of 56 million pounds in the year end to January 2025, bringing its annual profit to 120 million pounds for 2024.

This is according to retail analyst Nick Bubb, who told the reporting media outlet, the Guardian, that the company’s sales before VAT is also expected to rise to just over 11 billion pounds.

While such increases could reflect that John Lewis’ ongoing turnaround strategy is “still on track”, Bubb said, it brings into question the status of staff bonuses, which are yet to return following the company’s descent into the red.

Notably, the forecasted annual profit falls short of the John Lewis’ previously cited internal target of 130 million pounds, or the 150 million pounds the group said it needed to hit in order to reintroduce staff bonuses.

This would make 2025 the third year in which bonuses were not on the cards for staff. “I would expect more significant progress in profits over the next year, despite the economy,” Bubb added.

He noted that during a presentation of the company’s results by new chair, Jason Tarry, due March 13, John Lewis is expected to instead outline plans to focus on store upgrades and improving weekly pay for staff.

This would extend the company’s already lengthy turnaround plan, which has been ongoing for the past four years after John Lewis recorded a loss during the pandemic.

It has since seen a cut in store count and employee numbers, as well as the introduction of new campaigns and a shift in direction of its existing retail network, building on a total investment of 542 million pounds throughout 2024.

By March of last year, however, John Lewis finally returned to profit, and at the time said it would prioritise investing in partner pay and improving its business.