John Lewis staff to receive 15% bonus
The John Lewis Partnership has enjoyed a successful 2009 and is already hopeful for a buoyant 2010.
Staff at John Lewis Partnership will receive a 15% bonus – equal to eight weeks’ pay – as the group once again announces outstanding annual results.
For some retailers it spelt the end of the line but 2009 turned out to be another bumper year for the John Lewis Partnership – which incorporates Waitrose, John Lewis and Greenbee – as it unveiled an increase in group operating profit to £389.7 million, a rise of more than 20% compared to 2008.
Charlie Mayfield, Chairman of the Partnership, said: “Today’s results reflect the collective hard work of our Partners who as co-owners will each receive the same percentage of annual pay as a cash bonus. Partners will share £151.3m in cash, which is 15% of pay or the equivalent of nearly 8 weeks’ pay.”
Mr Mayfield said that although the co-ownership model which is adopted by the retailer may not work for all, it is working superbly at John Lewis. He said: “It is … our Partners’ energy, innovation and commitment drives the success and the sustainability of our business.”
Sales grew at Waitrose by 9% to £4.5 billion, and the supermarket saw a growth in like-for-like sales of 3.6%. The brand was given a welcome boost by the introduction of ‘essential Waitrose’; launched in March to help the chain reach a broader audience, it already accounts for 17% of sales.
Expansion in the form of new shop openings, convenience stores and overseas stores has also helped its performance.
John Lewis stores have enjoyed a successful year with a rise in gross sales of 2.8% to £2.9bn. The Chief Executive attributed the ongoing success to the Group’s commitment to quality, service and value.
The new ‘John Lewis at Home’ format which was introduced in Poole on the south coast of England performed particularly well and achieved its sales target for the year three weeks ahead of schedule. The company said it has plans for further expansion and has already confirmed a store will be opening in Croydon, in south London.
The John Lewis Partnership looks well-positioned to deal with the impending financial difficulties which look set to face the UK economy in 2010. Five weeks into the new year, Partnership sales are up 13.5% compared to 2009.
