Customer Investment Driving Progress
-
Partnership sales increased 5% to £13.4bn, marking another year of growth
-
Investments delivered record customer satisfaction scores in a challenging market
-
Profit before tax, bonus and exceptional items increased 6% to £134m
-
Operating cash flow up £63m to £595m, supporting increasing investment in the business and Partners, with £108m growth in pay and a Partnership Bonus of 2%
-
Liquidity strengthened to £1.6bn, enabling another year of self-funded investment in 2026/27
Jason Tarry, Chairman of the John Lewis Partnership, said:
Our multi-year plan to invest in customers and our brands for the long term is working; we have grown customer numbers and achieved record satisfaction. Despite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.
There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our Partners to improve the experience for our customers. I’m really grateful for the commitment and passion our Partners bring and, alongside our continued investment in Partner pay, we’re pleased to be in a position to award a 2% Partnership Bonus. We remain on track to make further progress this year.”
Full year performance
The John Lewis Partnership, home to Waitrose and John Lewis, reports an improvement in financial performance for 2025/26. Profit before tax, bonus and exceptional items increased to £134m, up 6% from £126m in 2024/25, supported by strong customer metrics and a disciplined approach to operating performance. Year-on-year profit growth was held back by headwinds of £53m from non-like-for-like taxation, comprising £13m from the new Extended Producer Responsibility packaging levy and £40m from higher National Insurance Contributions, as well as higher promotional mix as customers spent more cautiously, especially in the run up to the peak period.
Key initiatives driving growth and customer satisfaction included:
-
Improved the in-store experience for customers as part of their multi-year investment in their estate, with major refurbishments during the year in Liverpool and Bluewater, and beauty expansions in Solihull, Welwyn Garden City and Cambridge.
-
Delivered award-winning service for customers, topping the 2026 UK Customer Satisfaction Index for UK retail and seeing record demand for Personal Styling and Nursery appointments.
-
Boosted product availability by extending ‘Ship from Store’ to 28 locations, leveraging their shop estate as a fulfillment network to ensure in-demand items are always within reach.
-
Broadened choice and relevance for customers, launching 200 new and in-demand brands, including an exclusive national partnership with Topshop.
-
Giving customers more reasons to spend time in our shops, opening six new hospitality venues to bring the total to 62.
