More than 600 staff at the John Lewis store in Solihull are to receive an annual bonus equivalent to more than seven weeks' pay.
The pay-out is part of a UK-wide bonus for 63,000 partners who co-own the John Lewis retail group.
The department store and supermarket business will share out a pot of £106 million, an increase of 21 per cent on a year earlier following a 24 per cent rise in pretax profits to £216 million in the year to January 29.
It came on sales of £5.3 billion.
The improved performance reflected growth at supermarket chain Waitrose, which lifted sales ten per cent to £3 billion and profits by ten per cent to £193 million.
However, conditions were more challenging at its John Lewis department stores due to increased competition and unsteady consumer confidence.
Industry figures earlier in the week indicated that concerns about interest rates, the housing market and taxes had dampened sales of big-ticket items like furniture and electrical equipment.
However, general manager of the Solihull branch Bruce Haywood was adamant that the Touchwood department store was more than holding its own in an uncertain environment.
"Solihull had a terrific 2004 with second quarter sales up nine per cent from the previous year. Over the first five weeks of the current quarter we have also seen sales ten per cent ahead of the previous year," he said.
Mr Haywood puts Solihull's success down to the age of the store and its strategic advantage as the only John Lewis department store in the West Midlands.
"We are a fairly young store. Having only been around for three and a half years, we still have a large number of customers that we have yet to attract.
" Older John Lewis department stores have a completely different proposition to contend with."