What: the John Lewis Partnership is profitable again, but probably at the expense of its attractiveness to workers

Why it is important: In an era where talent war is everywhere, cancelling existing perks is a challenge.

The John Lewis Partnership, encompassing John Lewis department stores and Waitrose supermarkets, is anticipated to announce a GBP 25m profit in its annual results, marking a return to profitability after a previous loss of over GBP 77m. Despite this improvement, driven largely by rising sales at Waitrose, the company's 74,000 staff are expected to miss out on bonuses for the third time in four years. The partnership has been grappling with fierce competition, a shift in consumer behaviour, and the need for significant restructuring, including store closures and head office job cuts. Outgoing chairman Sharon White has overseen critical but tough decisions aimed at streamlining operations and cutting costs. However, challenges such as market share loss and the need for a clear retail focus persist. The company's future leadership remains uncertain, with speculation about potential candidates but no clear successor to White. As John Lewis and Waitrose work to solidify their market positions, the path to returning bonuses for employees appears long and fraught with ongoing economic pressures.

John Lewis returns to profit but staff bonuses remain elusive amid retail struggles