Tesco, Britain’s largest private employer, is set to reward its workforce with a £70 million “thank you” bonus in recognition of their contributions to the company’s soaring profits.

The announcement comes as Tesco reported a staggering nearly 160% increase in profits, positioning itself as a dominant player in the fiercely competitive retail market.

More than 220,000 hourly paid employees across Tesco’s stores, customer fulfilment, and customer engagement centres are slated to benefit from the bonus, representing approximately 1.5% of their annual wages. CEO Ken Murphy lauded the dedication and hard work of Tesco’s employees, attributing the company’s success to their efforts in driving sales and profit growth.

In line with its commitment to creating long-term, sustainable value, Tesco also revealed plans to repurchase £1 billion of its shares over the next year. This initiative will be supported by a dividend received from the sale of Tesco Bank to Barclays, unlocking £1 billion in cash for the supermarket chain.

Despite facing challenges from competitors and evolving consumer preferences, Tesco remains steadfast in its mission to deliver value to customers while ensuring financial resilience. The company’s robust performance has bolstered confidence among investors, with Tesco shares experiencing an 11% increase over the past year.

Tesco’s success is underscored by its ability to navigate changing market dynamics while maintaining its commitment to stakeholders. By prioritizing the needs of its workforce and shareholders, Tesco continues to solidify its position as a market leader in the retail industry.