John Lewis cuts staff bonus to the lowest level since 1953 at just 2% as it posts punishing drop in profits and warns shoppers that store closures are on the cards
- John Lewis saw total annual profit fall by 23% to £123m, latest results show
- Annual staff bonus now stands at 2%, the lowest since 1953
- Three Waitrose store closures have been announced today
The John Lewis Partnership has cut its staff bonus to just 2 per cent, after posting a 23 per cent drop in annual profits to £123million.
At 2 per cent, the staff bonus is the lowest payout since 1953 and new boss Sharon White has warned that store closures will be necessary to get the group’s bottom line back on track.
Profits at the partnership have now fallen for three years in a row and in a bid to revive its fortunes, the former high-street darling has vowed to plough stacks of cash into its online offerings, technology and Waitrose, while scaling back jobs at its head office and sorting out its store portfolio.
Low bonus: The John Lewis Partnership has cut its staff bonus to 2 per cent
New boss Sharon White has vowed to launch a major transformation of the business, which encompasses the need to look at ‘right sizing’ stores, ‘through a combination of new formats and new locations; repurposing and space reductions of existing stores; and closures, where necessary.’
As a sign of what is to come, White revealed that three Waitrose sites are now set to close this year, namely those located in at Helensburgh, Four Oaks and Waterlooville.
John Lewis had a dismal year, with operating profits slumping over 65 per cent from £114.7million to £39.5million, with shoppers spending far less money on electrical and homeware goods.
More to follow.