UK retailers Co-op and John Lewis Partnership have announced investments in wage hikes to support their workforce.
John Lewis Partnership, which operates the upmarket food retailer Waitrose & Partners, will invest £114 million (€135.6 million) in pay increases for around 65,000 partners across its business this year.
Seventy-seven percent, or around £88 million (€104.7 million) of this investment is voluntary and beyond the requirements of the national minimum wage, the company noted.
John Lewis Partnership will raise the pay rate for shop partners by 7.4% during the year.
The minimum rate of hourly pay for partners outside of London will increase from £11.55 to £12.40, and from £12.89 to £13.85 for partners within the M25, effective 1 April 2025.
Jo Rackham, interim executive director of people, said, “Our partners are co-owners of our business and their service to our customers is what sets us apart, so we have chosen to make another very significant investment in partner pay this year.
“This signals our continued commitment to our partners’ pay, taking our total investment over the last three years to £295 million (€350.95 million).”
Co-op UK
Elsewhere, Co-op UK will offer a minimum hourly rate of £12.60 for frontline store staff this year.
The pay hike, which has been accepted following a ballot of colleague Usdaw union members, represents an increase of almost 27% since 2022, the retailer added.
This wage increase means that a full-time customer team member will earn an additional £1,200 per year.
Kate McCrae, operations director at Co-op, said, “Our store colleagues are at the very heart of the business and we are pleased to be able to provide a reward package that is competitive, above inflation and impactful.
“This deal reaffirms our ongoing commitment to the real living wage, and ensures Co-op is among the highest food retailers in terms of pay.”
Recently, Marks & Spencer announced an investment of £95 million (€113.9 million) in salary hikes for retail workers, effective 1 April 2025.
