John Lewis Partnership awards 10% bonus to staff

More than 90,000 John Lewis and Waitrose staff have seen their bonuses cut for the third year running, to 10% of their annual salary.

Last year it was 11%, as against 15% in 2014 and 17% in 2013.

The partnership announced a 24% rise in annual profits before tax to £435m, ending 30 January.

However, higher pension charges and lower property profits meant pre-tax profits before exceptional items fell to £305.5m, from £343m last year.

It said the pension operating cost was £245.3m, an increase of £54.2m or 28.4% on the previous year's costs.

Sir Charlie Mayfield, chairman of John Lewis Partnership, said: "The partnership has delivered a healthy trading performance and increased market shares in challenging conditions."

Some staff at the partnership have reacted positively on Twitter to the bonus announcement, which is the equivalent of five weeks' pay, saying it is better than they expected.

Waitrose, which is owned by the same partnership, reported an operating profit of £232.6m, which was 2% down on last year.

The partnership said this was against a backdrop of price cuts in the supermarket sector and continuing food price deflation.

John Lewis shops saw its operating profit before exceptional items fall slightly, to £250m.
John Lewis said that trading conditions would remain difficult, especially in food retailing, but it expected to perform comparatively well against its rivals.

See the full results publication here. 

Image Cornfield / Shutterstock.com

Source : BBC News
www.bbc.co.uk/news/business-35772319