John Lewis and Waitrose staff set to receive bonus for the first time in four years
The employee-owned business, which runs the department store chain and Waitrose supermarket arm, is considering the bonus after a turnaround in performance.
John Lewis initially pressed pause on the payouts for its 69,000 staff in 2020 - the first time since 1953 - as it was hit by pandemic lockdown store closures, and has not paid a bonus to staff since 2022.
In March, the company said it would not pay a bonus despite seeing an upturn in profit, instead focusing on improved pay and investment in the business.
It received backlash from employees who launched a petition saying they were 'working harder than ever' but 'getting less recognition'.
However, the board will now reportedly be asked to recommend a payment if pre-tax profits reach £200million in the year to February 2026.
An internal update seen by the Financial Times said it was aiming for over £200million profit, adding that 'to get there we need to keep focused on the right things and deliver our plans'.
It would mark a significant reversal in fortune for the company, which has struggled with dwindling sales and increased competition.
Profit before tax reached £97million in the year to 31 January 2025, up from £56million a year earlier and the company said it expects to increase profitability in the coming year.
New chair Jason Tarry is overseeing a transformation plan this year, which includes a self-funded investment of £600million.
The retailer said the transformation would include 'store refurbishments and openings, technology upgrades, and supply chain modernisation.'
In another sign that Tarry's turnaround plan is gaining momentum, John Lewis topped customer service rankings, ahead of rival M&S.
John Lewis scored 86.7 out of 100 in a survey of 60,000 shoppers by the Institute of Customer Service, while M&S scored 85.6.
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