John Lewis staff face bonus cut

Staff at John Lewis and Waitrose were today braced for their first bonus cut in three years as the employee-owned firm shows it is not immune from the economic downturn.

Staff at John Lewis and Waitrose were today braced for their first bonus cut in three years as the employee-owned firm shows it is not immune from the economic downturn.

John Lewis Partnership publishes full-year results on Wednesday, when analysts expect it to announce a payout of between 12% and 14% of salary for the 77,000 staff, known as partners.

They were awarded 18% of salary from a bonus pot of £194.5m last year, meaning the first reduction since 2009.

In September, John Lewis announced half-year profits fell by almost a fifth to £90.4m after it was hurt by its promise never to be beaten on price, forcing it to match rivals’ promotions.

One analyst has forecast pre-tax profits for the full year of £350m, which compares with £366m last year.

In weekly figures published today, John Lewis said department store sales for the seven days to last Saturday were flat on a year earlier at £54m.

However, the performance was distorted by the timing of the half-term holiday and John Lewis pointed out that sales across February were 5.7% higher than last year.

 

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