After banking row, staff get bonuses that are richly deserved

IT IS not only Britain's bankers who are enjoying a return to bumper bonuses. John Lewis chief Charlie Mayfield yesterday heralded the "smiling faces" of his workforce as he unveiled an 18 per cent bonus - equivalent to nine weeks' salary for each employee.

The 194 million payout - more than a quarter higher than last year - is shared out among all 76,000 "partners" at supermarket chain Waitrose and the company's 32 department stores, from shop-floor workers to chairman Mr Mayfield himself.

In the John Lewis tradition, the company's partners gathered yesterday morning before their stores opened and were told the bonus they would receive this year - which amounts to 18 per cent of their annual salary.

John Lewis department stores have outperformed rivals recently as its more affluent consumers were able to cope better during the recession.

The news of the bonus - and the firm's 20 per cent leap in profits to 386m - was welcomed by retail experts.

Analyst Chris Field said: "It's good to see some of the profits being returned to their staff rather than shareholders who, important as they are, they're not involved in the business."

John Lewis said it would create a further 4,300 jobs this year - in addition to the 4,100 posts added last year. It also confirmed plans to increase the size of its call centre in Hamilton and revealed it had signed contracts on two new Waitrose stores in Scotland. The chain already has three Scottish branches, in Edinburgh and Glasgow, and is due to open a fourth in Newton Mearns this summer.

"I have just come from the announcement to Waitrose and John Lewis partners of the bonus this year, which was 18 per cent - around about two months of pay," said Mr Mayfield. "There were a lot of smiling faces there."

He said strong sales growth and profit were driven by a decision taken in 2008 to up the scale and pace of John Lewis's expansion during the recession, but also pointed to the firm's ownership model, which he said gave staff a sense of pride in the business. "We are long-term to our core," he added.

Overall sales in Scotland grew just 5.7 per cent compared to the 10.8 per cent across the UK group.

But chief executive Andy Street said that although Scottish stores fared less well compared to those in England, they had still beaten other Scottish retailers.

Mr Street said: "Our out-performance of the market in Scotland was as big as it was in England. All it reflects is a slightly weaker consumer economy last year in Scotland."

He added: "There is every sign of that being more equal this year."

Mark Price, chief executive of Waitrose, said the firm plans to open two more stores in Scotland this year in addition to the supermarket due to open in Newton Mearns this summer.

"We have also signed contracts on another two branches in Scotland but we haven't announced the location yet," he said.On expectations for 2011, Mr Mayfield said: "The consumer is clearly feeling cautious and confidence is fragile.

"I think we are in a phase which is particularly uncertain.

"It is sort of like the country is waiting for the exam results and they are not quite sure what the future will hold beyond it.

"But we will come through that, although I don't think when we do it will be plain sailing."