John Lewis staff are to be rewarded with huge bonuses after profits increased at the department store group.
The firm, which also owns Waitrose supermarkets, posted a 9.7% rise in profits before tax and bonuses of £306.6m for the year to January 30.
Their results mean the firm’s 70,000 staff, or partners, will now share a bonus pot of £151.3m, with payments equivalent to 15% of salary - up to 8 week's work.
John Lewis said the year was one of “profound change” for the group with the expansion of the Waitrose chain and a resilient performance at the department stores.
John Lewis said it emerged powerfully from the recession, with Chairman Charlie Mayfield commenting: “This was a year of profound change across the Partnership and the resilience and flexibility of our business model has underpinned a market leading performance.
"We have continued to invest, innovate and grow, emerging from the recession in a stronger competitive position.
"Waitrose has made enormous progress in the year with significant investment in both price and in the development of new shops, new formats and strategic partnerships.
"This, combined with the tremendous success of essential Waitrose has made the Waitrose brand more accessible to more customers in more parts of the United Kingdom. Each week up to 400,000 more people are now choosing to shop at Waitrose.
"Partners have shown tremendous commitment during changing times. I am therefore delighted that our Partners will share fairly in the financial rewards of a successful year with a Partnership bonus of £151.3 million which means that all our 70,000 Partners will receive a bonus of 15% of their salary, equivalent to nearly 8 weeks pay.”
Gross sales were up 2.8%, or £78.1m, at £2.9bn and on a 52 week basis sales were 4.3% higher.
Like-for-like sales were up 2.3% during the year and operating profit before property gains increased by £21.6m, or 15% to £165.9m.
The John Lewis Partnership operates 29 shops across the UK (28 department stores and one John Lewis at Home), johnlewis.com, 225 Waitrose supermarkets and Greenbee.com, a direct services company. The business has annual gross sales of over £7.4bn.
It is the UK's largest example of worker co-ownership where all 70,000 staff are Partners in the business. (www.johnlewispartnership.co.uk)
j kidd, edinburgh around 3 weeks, 2 days ago