Staff at John Lewis were handed a bonus equivalent to almost eight weeks pay today, as the retailer banked profits of £252 million.
The 10 per cent hike in pre-tax profits came as sales at its 27 department stores and 174 Waitrose supermarkets jumped 8 per cent to £5.8 billion in the year to January 28.
The market-busting performance saw its 63,000 staff - who are partners under John Lewis's worker co-ownership scheme - pocket an annual bonus worth 15 per cent of their salary.
John Lewis said the results came amid the most testing year for the high street in more than a decade, and warned that 2006 would be another tough year.
But it said sales in the five weeks to March 4 were up 8 per cent at John Lewis and 9 per cent at Waitrose.
Last week John Lewis was crowned the most popular store in the UK in a survey of shoppers - while Waitrose came in second.
John Lewis chairman Sir Stuart Hampson said he was "delighted" at the accolade.
"2005 saw some of the most testing retail conditions for well over a decade, but our storming performance in the final quarter delivered a strong improvement in sales and profits for the year," he said.
"Looking ahead, whilst there is every indication that this year will continue to be a tough one and that retailing in 2006 will not be for the faint-hearted, both divisions have made healthy starts to the new trading year."Reuse content