John Lewis staff to share 200million as profits bounce back - and Waitrose has doubled in size in nine years

By Neil Craven, Financial Mail On Sunday

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Staff at John Lewis Partnership are expected to share in a bonus pot of almost 200million this week after profits bounced back at the employee-owned group. 

Excluding exceptional items and staff bonuses, profits are expected to increase by 17 per cent to 415million, said retail analyst Nick Bubb.

The performance was buoyed by a strong first half, but the six months to the end of January was marred by heavy discounting on the high street and the increasing impact of online deliveries as a cost to the business.

On a roll: Staff at John Lewis are looking forward to an increased bonus

On a roll: Staff at John Lewis are looking forward to an increased bonus

The bonus of up to 16 per cent of annual salary would be slightly higher than last year’s 14 per cent, according to forecasts by Neil Saunders at retail research firm Conlumino.

The group, which also owns Waitrose, increased sales to 8.5billion. That means it has doubled in size over nine years.

 

Bubb said the group had capitalised on the ‘disarray’ among its rivals, including other supermarkets but also Marks & Spencer.

Comparable nine-year sales growth at M&S is 25 per cent to 10billion.

But growth has stalled in recent years as it struggles to find a winning strategy.

 

The comments below have not been moderated.

A great business but strip out their online sales from this year's sales and next year's results will show a very tough like for like. Yes I know before you say it they give Great customer service.....but online sales deliver lower margins and require less payroll to process these sales. I'm not sure they will be the darling of the high street next year when redundancies start kicking in properly......they have just announced some already.

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A great business but strip out their online sales from this year's sales and next year's results will show a very tough like for like. Yes I know before you say it they give Great customer service.....but online sales deliver lower margins and require less payroll to process these sales. I'm not sure they will be the darling of the high street next year when redundancies start kicking in properly......they have just announced some already.

Click to rate     Rating   1

Waitrose has doubled in size in nine years - Wonder what the 'Pippa' effect will be? Just hope they don't stock any of her overpriced party pieces, either.

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If they were a bank we would be jumping up and down demanding further bonus taxes to give to the needy poor or to reduce their prices instead to benefit the hard up British population. But then you can't have it every way.

Click to rate     Rating   9

Angie, the 16% figure is all speculation. The bonus was set last Thursday, but it is a very well kept secret until 9:30am on Thursday 7th.

Click to rate     Rating   6

Excellent company with excellent service. No horses here. Very satisfied customer.

Click to rate     Rating   17

I'd like to know where the 16% figure has come from. The final decision will be made 2 days before it's announced (its being announced on the 7th at 9 am). of course last year the predictions were 13% and it was 14% so let's hope it's higher this year. my husband works for john lewis so I do say that from a selfish point of view.

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A great business example of how looking after your staff creates a profitable operating company. I work for a private group of garden centres who profess to look after their staff, but apart from a staff discount card, have no profit share scheme other than for the garden centre managers themselves.And these managers receive bonuses based on the gross profit their centres produce. And these managers produce the profit by reducing staff numbers to such a low level that it affects customer service, and consequently affects sales. So whilst the staff do the laborious manual work, the managers trouser a bonus. In a bid to convince staff that the company care about the staff,we have been told that one of the perks of working for the group is free parking!!! oh, and free uniform. Because it's a private company their accounts aren't easy to obtain, and whilst they refer to ales on a daily basis, they never mention profit, apart from inferring there's no money in garden centres.

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