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Retail: John Lewis and Waitrose staff likely to receive 15% annual bonus

12:12 05 March 2014

John Lewis Partnership chief Charlie Mayfield outside the Waitrose and John Lewis at home stores in Ipswich.

John Lewis Partnership chief Charlie Mayfield outside the Waitrose and John Lewis at home stores in Ipswich.

Archant

John Lewis and Waitrose staff are set for bonuses worth 15% of their salaries tomorrow as the retail chains continue strong trading.

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John Lewis Partnership, which is owned by its 85,500 employees, will announce the bonus award alongside annual results, with the group expected to report a 7% rise in underlying profits to £370million.

The bonus percentage is set to be down from 17% a year earlier due to the increased cost of servicing the group’s £840m pension fund deficit.

The retailer’s 10-year plan to eliminate the deficit included a one-off payment of £85m in January followed by further annual cash payments of £44m.

Each worker, from weekend check-out assistants to chairman Charlie Mayfield, receives the same percentage of salary as a bonus.

The reported figure of 15% is believed to amount to £200m in total and represent around £3,500 to the average full-time employee.

The department store and supermarket arms of the partnership have continued to trade well, with John Lewis’s Christmas like-for-like sales up 6.9% and Waitrose reporting a 3.1% rise.

Independent retail analyst Nick Bubb has highlighted concerns about the impact of intense supermarket competition on profit margins at Waitrose.

But he said: “John Lewis Partnership should be reasonably optimistic about the outlook for the UK consumer and for profit and bonus growth in 2014/15.”

For more on the staff bonuses, click here.

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3 comments

  • Is it any wonder they can afford to pay these huge bonuses when the average person's grocery shopping bill keeps rising, goes to show price increases aren't all as a result of increases from suppliers.

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    Footyfan

    Wednesday, March 5, 2014

  • Pop-pop; I also think that John Lewis know how and who to recruit. I won't shop anywhere else than Waitrose these days, the staff are polite and efficient and the customers don't walk around in their dressing gowns.

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    Drew Peacock

    Wednesday, March 5, 2014

  • This is why JohnLewis does so well. They have staff who are treated well and given a hefty bonus. I am sure that very few other retail staff are treated this well. This is what leads to good service. People who are cared about by their company in turn care about their company.

    Report this comment

    Pop-pop

    Wednesday, March 5, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

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