John Lewis staff share £87m bonus

Workers at the John Lewis Partnership - 59,000 in all - are to share an £87million bonus this year, equivalent to just over six weeks' pay each.

It is the second year running that the bonus has been increased. This year's 29 per cent boost follows a 10 per cent recovery in trading profits at the group, which also owns the Waitrose supermarket chain, taking the figure to £277 million.

Sales for the 12 months to 31 January topped £5billion for the first time, rising by eight per cent to £5.1billion.

Chairman Sir Stuart Hampson said John Lewis had gained market share over the year and that Waitrose had performed particularly well, boosting sales by 12 per cent to enjoy a "spectacular" year.

The group's flagship Oxford Street department store continues to be affected by the congestion charge, and Sir Stuart again called for a rethink on Mayor Ken Livingstone's plans to extend the zone to Kensington and Chelsea, which would take in its Peter Jones store at Sloane Square.

Sir Stuart said: "You can't judge the success of the scheme merely by the fact that there are fewer cars. You have to judge by the economic results on the capital as a whole and that's what Ken Livingstone doesn't seem to have cottoned on to."

John Lewis has commissioned a detailed report into the scheme, which will be ready at the end of this month. It will be made available to all interested parties, including the Mayor.

New stores at Belgravia and Mill Hill in London and Portishead near Bristol, and a relocated shop in Romsey, near Southampton, lifted the profits.

The group, owned by a trust that exists for the benefit of the group's employee partners, today said it plans to open two new department stores, in Leicester by 2007 and Cardiff by 2008, with a branch at Manchester's Trafford Centre shopping complex due to open next year.

In total, a further 10 stores will be added from 2007 onwards as part of a £300million expansion programme. John Lewis is also considering launching its own credit card, said Sir Stuart. "It's a crowded market but we've been consulting our customers and feel they would welcome it."

Finance director Ian Alexander said the company had seen spectacular internet and catalogue sales growth, up 70 per cent against the previous year.