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Retail giant John Lewis Partnership announced that it had returned to an annual profit, but announced that it would again not pay out employee bonuses.

The group, which owns department stores John Lewis and supermarket chain Waitrose, reported pre-tax profits of £56 million for the year to 27 January, after a loss of £234 million the previous year.

The company said that after “careful consideration” it would not pay its staff an annual bonus for the second year in a row, but announced that total employee pay would be increased by a record £116 million this year.

This is only the third time since 1953 that the company has not paid an annual employee bonus.

The group said it had cut costs by £88 million last financial year by changing staff working hours and “simplified working practices” in stores and central teams.

The company announced that it plans to increase investment by 70% to £542 million in 2024-25, with a focus on modernising technology, renewing the business and simplifying the group.

The company is reportedly considering cutting its workforce by 10%, with around 11,000 jobs to be cut over the next five years, with the aim of saving £900 million by 2027/28.