The John Lewis Partnership has reignited hopes that it will restore its staff bonus after “fantastic” Christmas sales led it to smash its £100m annual profit target.
According to a memo seen by The Mail on Sunday, bumper Christmas sales at Waitrose supermarkets, combined with the effects of the major cost-cutting measures taken across the partnership, meant the retail group achieved its profit target.
The memo said staff could expect to receive an annual bonus in March, around 18 months since the last bonus was paid out in 2020.
The John Lewis Partnership is due to issue a financial update on its performance next month and the board will make a decision on whether to pay the staff bonus again will be made in March.
The partnership’s executive director for finance Berangere Michel refused to give a firm answer when pressed by staff on the retailer’s internal communications system. However, she described the payout as a “possibility” and praised the group’s performance over Christmas as a “superb achievement”.
The return of the staff bonus will be seen as vindication for the decisions taken by chair Dame Sharon White including shutting stores, slashing jobs and canceling the bonus last year for the first time in over 65 years.
John Lewis said in September that it would restore the staff bonus once profits hit £150m and it reduced its debt burden. White said the targets were “stretching, but not impossible”.
The memo also said cost-cutting measures are progressing slower than previously planned having saved £153m last year, £31m less than the original target.
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