John Lewis staff will each get a 3% bonus
(Picture: John Lewis)John Lewis and Waitrose staff are celebrating the return of the group’s bonus scheme as performance at the iconic retailer improves.
John Lewis Partnership said today that its 78,000 staff would share a £46 million bonus pot, equivalent to 3% of wages for every worker.
The department store scrapped its bonus scheme during the pandemic for the first time since 1953 as shops were closed and the chain lost millions.
But underlying profits have climbed above the crucial £150 million level set as the target for the return of bonuses.
“It’s been a tough year, as it has for everyone, but the return of the bonus feels like a very fitting tribute for partners who have gone above and beyond,” chair Sharon White told the Standard.
She and the eight members of the group’s executive team are handing their bonuses to the Red Cross.
The group closed eight department stores during Covid and has reduced the number of workers by around 2,000, including head office jobs. But now the talk is of a positive future with the retailer successfully completing the first year of a five-year turnaround plan.
The John Lewis department store chain achieved its highest ever sales of £4.93 billion in the 12 months to January 29, up 8% like-for-like on last year.
Sales at Waitrose hit £7.54 billion, up 1% on last year.
Profit before exceptional items —including the bonus pot — rebounded to £181 million, up 38%. Overall losses before tax shrank to £26 million, £491 million better than last year.
“The turnaround is on track. The figures are very encouraging but there’s still more to do,” said White.
There are no more plans to close stores, White said, but the pandemic shift to online shopping continues to grow.
Before lockdowns, 40% of John Lewis’ business was online — now 65% is. Waitrose has quadrupled its online business from 5% of sales to 17%.
“Most of that trend looks to be permanent and the pace of rapid adaption will continue,” White said.
Richard Lim of Retail Economics said: “It’s been a painful transition period for the retailer but coming out of the pandemic it appears to be on a much stronger footing. However, significant obstacles face the business as ongoing challenges from the pandemic collide with a cost of living crisis.”
John Lewis recently ditched its “Never Knowingly Undersold” pledge to customers to focus on its Anyday value ranges instead. It has hinted at a new strapline to be launched later this year. “Watch this space,” said White.
The group has very limited commercial interests in Russia but has ditched a vodka brand and a barbecue set made there in response to war in Ukraine.
Wages are rising by 2% on top of a pledge to pay the real voluntary living wage from April, increasing all starting rates to at least £9.90 an hour.
