John Lewis has prioritised partner pay over bonuses in its latest financial year, despite the retailer tripling its profits.

The move marks the third consecutive year that the retailer has scrapped its staff bonuses.

It comes as the company reveals that profit before tax and exceptional items jumped from £42 million in the previous year to £126 million in the 12 months ended 25 January 2025.

Chief executive of the John Lewis Partnership Nish Kankiwala, who is stepping down from the role this month, said that the results are a “significant testament” to the progress of the company’s transformation.

John Lewis' transformation plan, which was rolled out to address losses at the company, focuses on improving productivity and efficiency. It is expected to achieve cost savings of around £600 million.

In 2023, the strategy was pushed back by two years after the organisation faced costs of £179 million due to rising inflation.

The business did however return to profit that same year after recording a loss of £234 million in 2022.

John Lewis now expects to complete its Partnership Plan by 2027/2028.

The decision to axe bonuses comes days after the company announced that 65,000 employees will see a pay rise this year.

The pay increase represents an investment of £114 million.

In its latest financial results published on Thursday, the company said that after careful consideration it has prioritised the pay rise over sharing a Bonus this year.

Kankiwala will return to a non-executive role, with the company deciding not to replace the position as part of its ongoing transformation.

The chief executive position, which was created in March 2023, will be abolished, with Jason Tarry set to chair both the executive team and partnership board.

The changes come as part of a significant progression in the company's transformation over the past two years.

Kankiwala, who moved from his previous role as a non-executive director to become the partnership's first-ever chief executive officer, was initially appointed for a two-year period to help accelerate the transformation phase.

Last September, John Lewis described its latest half-year financial results as a “marked improvement” after several years of recorded losses.

The department store saw sales jump by two per cent to £5.9 billion, while pre-tax losses declined by 91 per cent from £57 million in 2023 to £5 million.

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