UK retailer John Lewis Partnership said it would accelerate investment this year as it reported a trebling in annual profit, driven by an improvement in its food business, and forecast more growth as its turnaround plan gains momentum.
The UK's largest employee-owned business runs the John Lewis department stores and the upmarket Waitrose supermarket chain.
It said today it would invest up to £600m in the business in 2025/26, up from £450m in its year to January 25.
The partnership is also spending £114m on a 7.4% pay rise for 65,000 workers, or partners as it calls them.
However, for a third year in a row it is not paying them an annual bonus.
New chairman Jason Tarry said he saw "significant opportunity for growth" in both brands, though this required "considerable catch-up investment" in stores and the supply chain.
"I am confident with the transformation momentum in the Partnership, we remain well placed to drive further growth in the year ahead and over the longer term," he said.
The department store division in particular has had a difficult few years as it battled the Covid pandemic and then the cost of living crisis. It closed stores and cut jobs.
But the partnership is now benefiting from the plan launched by previous chair Sharon White in 2020 that sought to boost the appeal of its brands and invest in technology, whilst also cutting costs.
White was succeeded in September by former Tesco executive Tarry who is tasked with driving the next phase of the partnership's modernisation at a time when it is facing increased competition from key rival Marks & Spencer.
The partnership made a profit before tax and exceptional items of £126m in 2024/25, up from £42m in 2023/24. Sales grew 3% to £12.8 billion, with Waitrose sales up 4.4% and department store sales flat.
It expects the macroeconomic environment "to continue to be challenging", but forecast a further increase in profit in 2025/26.
