John Lewis and Waitrose staff see bonuses fall for third year in a row after profits fall

Unveiled: John Lewis and Waitrose staff will receive a bonus worth 10% of their salary

Stefan Wermuth/Reuters

10 March 2016

Staff at John Lewis and Waitrose have had their bonuses cut for the third year in a row after the company behind the retailers revealed a fall in profits.

The John Lewis Partnership said the so-called Partnership Bonus for the year to January 30 would total £145 million or 10% of salary.

Last year workers were paid £156.2 million, or 11% of their wage.

In line with expectations, profit before tax and exceptional items was almost 11% lower at £305.5 million compared with £342.7 million year earlier.

Chairman Charlie Mayfield said the drop was "entirely due" to higher pension charges and lower property profits.

Still, he noted that "market conditions were challenging through the year with deflation in grocery of -2.6% and subdued demand in non-food".

That was reflected sales figures: Waitrose's like-for-like sales slipped 1.3%, while gross sales were down 0.7%. At John Lewis gross sales were 2.8% higher, but overall, group revenue was up just 0.5% at £9.75 billion.

The new year has started better, the company said, with John Lewis' like-for-like sales up 3.6% in the first five weeks. Waitrose has managed a 0.4% rise excluding petrol but the "market remains challenging" - something echoed by Morrisons in its full-year results also published on Thursday.

Mayfield struck a confident note with outlook for the year ahead.

"Conditions in the market will remain difficult, especially in grocery. However, given our continued investment in both our operations and the customer offer, I expect sales in both Waitrose and John Lewis to continue to perform comparatively well against the market."

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John Lewis and Waitrose staff see bonuses fall for third year in a row after profits fall

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