John Lewis cuts bonuses for the sixth year

Staff at the John Lewis Partnership will see their bonuses cut for the sixth consecutive year as the retail giant revealed a 45.4% fall in annual profits to £160 million

The group said it will reduce the renowned bonus to 3% of annual salary, with 83,000 partners sharing a pot worth £44.7 million, down from £74 million the previous year.

John Lewis has now cut the bonus for six years running, and the latest figure is down from 5% last year.

The partnership, which includes upmarket supermarket Waitrose, warned in January that it might have to axe the renowned pay-out for the first time

Chairman Sir Charlie Mayfield said: “In line with expectations set out in June, our partnership profits before exceptionals have finished substantially lower in what has been a challenging year, particularly in non-food.

“The board has awarded a bonus at 3%. This enables us to continue debt reduction, maintain our level of investment, and retains solid cash reserves to cope with the continuing uncertainty facing consumers and the economy.

“We expect 2019 trading conditions to remain challenging but are confident in our strategic direction and customer offer across both brands.”

– Press Association