Bonus cut expected at John Lewis and Waitrose

WORKERS at the shopping giants John Lewis and Waitrose today expect to be hit by their first bonus cut in three years as a result of the economic squeeze gripping the country.

John Lewis Partnership will publish its full-year results on Wednesday, and analysts expect it will then announce a payout of between 12 per cent and 14 per cent of wages for the 77,000 staff, known as partners.

That would be down on the 18 per cent they received last year, when the total bonus pay out was £194.5 million.

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Neil Saunders, managing director Conlumino, retail experts, said: “Although John Lewis is outstanding in many ways, it is not immune from the wider pressures on the economy, and inevitably this will affect the bonus.”

John Lewis announced that its half-year profits fell by almost a fifth to £90.4 million in September.

It has been hit by a promise never to be beaten on price, which has forced it to match offers at rival shops.

One analyst has forecast pre-tax profits for the full year of £350 million, which compares with £366 million last year.

In weekly figures published today, John Lewis said department store sales for the seven days to last Saturday were flat on a year earlier at £54 million.

However, the performance was distorted by the timing of the half-term holiday and John Lewis pointed out that sales across February were 5.7 per cent higher than last year.