John Lewis bonus payments rise 18%
Department store group John Lewis raised partnership bonus payments by 18% for the year despite a challenging environment.
Partnership Bonus payment were increased by £27m to £181.1m, which is 20% of salary or 10 weeks' pay.
"The Partnership has had a successful year in a challenging trading environment. The key to our success is the commitment of our Partners who consistently deliver the customer service and professionalism that underpins our reputation for value, choice, quality and honesty," said the group.
Pre-tax profit before bonus and tax for the period rose 18.7% to £379.8m on group sales that increased 6.3% to £6.8bn. It said both Waitrose and John Lewis performed strongly, growing overall market share.
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The general slowdown in the housing market in the second half of the year "depressed sales of large purchases in the home market" and that trend has continued into the new financial year, it said.
Sales for the first five weeks of the year to 1 March are up 2% in John Lewis while at Waitrose, which tends to be less affected by a downturn in consumer confidence, sales are up 8%. Overall group sales for the five to 1 March rose 6%.
"We expect trading conditions to be very challenging this year as consumers continue to respond to concerns about the housing market, higher food and energy costs and tighter credit conditions, it said.
"However, we believe that the diversity of our business across the home and grocery sectors and the benefits of our Partnership model make us resilient and able to perform well even in testing market conditions," it added.
