John Lewis annual staff bonus falls

John Lewis staff saw their traditional annual bonus fall on Wednesday after profits at the retailer were knocked by the economic downturn last year. Staff at the department stores and Waitrose supermarkets will share £165.2m, to receive a bonus of 14% of salary. That is down from the 18% enjoyed by the staff who co-own the retail group last year . The partnership announced the bonus cut after reporting a 3.8% fall in annual pre-tax and pre-bonus profits to £353.8m. Gross sales were up 6.4% to £8.73bn. The company said that after a tough economic backdrop to 2011, trading conditions were still difficult and consumer confidence remained subdued. It was continuing to grow faster than the market. The chairman, Charlie Mayfield, said: "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." He predicted the Queen's diamond jubilee and the Olympic Games would provide a lift for consumers, adding: "I am cautiously optimistic that trading conditions may improve later this year." Within the group, profits slumped fastest at the department stores. John Lewis operating profits dropped 20.4% to £157.9m while at Waitrose they were down 5.2% to £260.6m. The group put the fall at the department stores down to the way it allocates pension costs and to three other main factors: its efforts to keep prices competitive; the costs of opening new stores including at Stratford City, east London, and lower sales at nearly all its established shops.