John Lewis cuts bonus as profit dips
The John Lewis Partnership announced in its full-year results for the year to 28 January that it will pay staff 14% of salary from a bonus pot of £165.2 million compared to last year’s 18% from a pot of £194.5 million.
Although the Partnership's gross sales were up 6.4% to £8.73 billion on the previous year, operating profit was down 8.7% to £393.3 million. Profit before Partnership Bonus and tax was down 3.8% to £353.8 million.
John Lewis said that increased investment in its online business and new stores openings also contributed to the profit fall.
Gross sales at John Lewis department stores grew 3% to £3.3 billion in the year while those at the Waitrose supermarkets rose 8.6% to £5.4 billion. Online sales at johnlewis.com increased by 26.3% to £680.8 million
The partnership created 4,400 new jobs in the year and said it expects to deliver a further 1,900 in 2012. It had also invested £21.3 million in improving its operating structures.
Charlie Mayfield, chairman of John Lewis Partnership, commented: "We have achieved a good sales performance in a tough year for the economy. Profits are lower than last year, but better than expected and I'm delighted to announce that all 81,000 Partners will be receiving a bonus equivalent to over seven weeks' pay.
"Profound changes are taking place in the retail sector and importantly this was a year when we upped the pace of innovation and investment. That came at the price of some short-term profit but leaves us in a good place at the start of this year."
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