The John Lewis Partnership has announced its 2008 financial results.

The John Lewis Partnership has reported its financial results for the year ending 31 January 2009, revealing sales up 3% while profits decreased 18% – and has reported its 69,000 staff will receive a partnership bonus payment of 13%, equal to seven weeks’ pay.

The Group is the UK’s biggest example of worker co-ownership, which means that every member of staff is a partner in the business and will receive the same bonus regardless of their role or seniority.

Charlie Mayfield, Chairman of the John Lewis Partnership, said: “It was a very tough year and we met the challenges of the deteriorating conditions. We controlled costs tightly, traded confidently and stayed true to our customer promise of quality and price competitiveness.
 
“Our customers stayed loyal to John Lewis and Waitrose and our Partners worked harder than ever to provide the highest possible standards of customer service. The bonus announced today is well deserved and has been hard earned by all our Partners.”

The partnership consists of 27 department stores in the UK, 198 Waitrose supermarkets, and a direct services company called Greenbee. Sales at Waitrose rose by more than 5% to around £4 billion, while operating profits fell 3.4% to £211.6m. John Lewis fared worst, with sales down just 0.1% and profits down more than 27% to £144.4m.

In response to the difficult economic situation, a low-cost product line was launched at Waitrose stores. ‘Essential Waitrose’ is a collection of more than 1,400 everyday products set at competitive prices, and can be attributed to the drop in Waitrose’s profits as the stores have invested heavily in price reductions in an effort to retain customers.

And customers have rewarded the retailer’s efforts. Over the past year, Waitrose and John Lewis have been rated as ‘most preferred retailers’ in surveys carried out by Which?, Verdict and Watchdog.

The Group anticipates a difficult year ahead with fierce price competitions between all major retailers. “We think 2009 will be another very difficult trading year. We’ve set an ambitious pace for change and continue to have the appetite and funds to expand and enhance our offer,” explained Mayfield.