Retailer John Lewis Partnership has said it will not pay a staff bonus for the third year in a row despite seeing annual profits rebound higher. The employee-owned business, which runs the department store chain and Waitrose supermarket arm, posted a 73% jump in pre-tax profits to £97 million for the year to January 25.

On an underlying basis, profits tripled to £126 million from £42 million a year ago. But the group said it would not pay out a bonus once again for its workforce of around 73,000 people, instead saying it would prioritise another £114 million in overall pay and up to £600 million of investment in the business.

It said: “After careful consideration, we have prioritised this investment over sharing a bonus this year.”

Jason Tarry, who took over as chairman of the John Lewis Partnership from Dame Sharon White last September, said: “We have made good progress with much more still to do.

“Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands.

“This will involve considerable catch-up investment in our stores and supply chain.”