JOHN Lewis and Waitrose workers received’t be getting an annual bonus for the primary time in 67 years following the coronavirus disaster.
It comes after the group mentioned it plunged by 10% to a £635million pre-tax loss for the six months to July 25.
John Lewis will not pay workers bonuses this 12 months – the primary time since 1953Credit score: Reuters
The one different time the bonus programme was scrapped was in 1948 following the aftermath of World Battle Two and it did not resume once more till 1953.
The group, often known as the John Lewis Partnership, now does not count on to begin giving workers a bonus once more till its income exceed £150million.
Some 80,000 persons are employed by the retail group within the UK.
Which John Lewis shops won’t ever reopen?
JOHN Lewis has introduced the next outlets will not reopen:
- Birmingham – division retailer
- Croydon – at house store
- Heathrow – journey hub
- Newbury – at house store
- St Pancras – journey hub
- Swindon – at house store
- Tamworth – at house store
- Watford – division retailer
The workers bonus started in 1920 and was initially paid out within the type of shares and shares within the firm.
In 1970, it was transformed to the money bonus workers get right now.
Bonuses within the Seventies and Nineteen Eighties have been as excessive as 24% and as not too long ago as 2013 it was 17%.
In January final 12 months, the group warned that the bonus may be axed regardless of gross sales being up over the Christmas interval.
Ultimately, it slashed the bonus to 3 per cent of staff’s annual salary – the bottom degree since 1953 – when annual income fell 45.4 per cent.
The Partnership mentioned store closures during lockdown and prospects shopping for much less worthwhile objects, corresponding to rest room paper or laptops, had hit commerce.
John Lewis was pressured to shut all 50 of its stores for the first time in 155 years because of the authorities lockdown, whereas Waitrose outlets stayed open.
However the division retailer chain has seen transactions “beginning to construct” since reopening websites, though gross sales are nonetheless round 30% decrease than the identical interval final 12 months, however nonetheless forward of expectations.
In the meantime, Waitrose noticed like-for-like gross sales enhance by nearly 10% throughout the identical interval as customers continued to go to supermarkets.
Throughout the group, gross sales elevated by 1.1% to £5.56billion for the half-year.
The announcement comes after the retail large revealed plans to shut eight John Lewis stores, in a transfer that can put 1,300 jobs in danger.
On high of this, paperwork present it may additionally convert 40% of its Oxford Street store into workplaces.
It is also shutting 4 of its Waitrose grocery store shops, with the lack of 124 jobs.
Dame Sharon White, chairwoman of the retail group, instructed companions on Thursday that the announcement “will come as a blow”.
She mentioned: “I mentioned to Companions in April that I couldn’t see the circumstances wherein we might have the ability to pay a bonus subsequent March.
“The Partnership Board has now confirmed that there won’t be a bonus subsequent 12 months given our revenue outlook.”
In additional retail information, excessive avenue retailer Next has agreed to buy struggling lingerie brand Victoria’s Secret.