John Lewis returns to profit but partners miss out on bonus again | Business News


John Lewis has returned to profit for the first time in three years but staff face another year with no bonus.

The company behind Waitrose grocery shops and the John Lewis department stores recorded a profit of £56m, after a loss of £234m in the previous financial year.

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The John Lewis Partnership is employee-owned by permanent staff, known as partners. Those 76,000 partners typically get an annual bonus payment but were disappointed again this year.

This marks only the third time since 1953 that the group has not paid out an annual staff bonus.

But the firm said it was investing in its retail businesses and in staff base pay.

Pay could be increased by a record £116m this year, the company says.

The return to profit was largely driven through Waitrose, after a million more customers shopped with the partnership through the last year, totalling 22.6 million shoppers.

Waitrose profits grew by 19%, while at John Lewis profits were up by just 2%.

Similarly, at Waitrose sales were up 5% on the year before, while John Lewis department store sales dropped 4%.

The profit figures were due to selling more items, better margins and “sustainable productivity improvements”.

No mention was made of news reports that 11,000 jobs are to go over the next five years in a bid to save £900m.

Cost savings worth £88m, were made with changes to staff hours and “simplified ways of working”.

Profit is to rise again this year, the partnership said, as it overhauls strategy, aiming to open new Waitrose shops and refurbish 80 of the existing grocery outlets, and add around 80 new brands to its department stores.

Categories that performed well over the year was men’s tailoring which saw sales growth of 48% and beauty with a rise of 4%.

One of the viral Stanley cups was sold every 20 minutes.

A £5 lunch deal brought an extra 22,000 customers into Waitrose shops, the company said.

Read original article here.

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