Waitrose staff bonuses cut for second year running

Staff at Waitrose Berkhamsted will have bonuses cut along with 90,000 colleagues
Staff at Waitrose Berkhamsted will have bonuses cut along with 90,000 colleagues
  • Waitrose staff see bonuses cut to 11% of their salary
  • It is the second year in a row the payout has been reduced
  • John Lewis Partnership, which includes Waitrose, announced profits have fallen 9%
  • Bosses admit Waitrose has endured a tough start to the year

More than 90,000 Waitrose and John Lewis staff will see their bonuses cut to 11% of their salary this year, it was announced today.

The news will come as a blow to members of staff at Berkhamsted’s Waitrose store. It is the second year in a row that the payout has been reduced after staff received 15% last year and 17% the year before.

John Lewis Partnership, which is owned by employees of the two retail chains, reported pre-tax profits before exceptional items of £342.7 million for the 53 weeks to January 31, down 9%.

Stripping out the last week of trading to compare with last year’s 52-week figures, profits were down by 10.5%.

The group said the partnership bonus of £156.2 million was equivalent to nearly six weeks’ pay. It applies to 93,800 staff.

Announcing the annual results, group chairman Sir Charlie Mayfield said: “Waitrose (was) held back by three factors: the impact of trading in a highly competitive and deflationary market; a significantly higher level of investment in the year; and the impact of one-off items, including property impairments and onerous leases.”

Waitrose in Berkhamsted

Waitrose in Berkhamsted

The partnership also admitted Waitrose had endured a tough start to the new trading year. The high-end retailer has been ramping up promotions as it bids to be more competitive on price.

Sir Charlie added: “We expect the returns for the grocery sector to be materially lower for a period of time.”

The town’s Waitrose store was in the news last year when Made In Chelsea star Jamie Laing visited to launch his new confectionery range.

Waitrose (was) held back by three factors: the impact of trading in a highly competitive and deflationary market; a significantly higher level of investment in the year; and the impact of one-off items, including property impairments and onerous leases.

Sir Charlie Mayfield, group chairman
Made in Chelsea star Jamie Laing visits Waitrose Berkhamsted to launch his confectionery range Candy Kittens

Made in Chelsea star Jamie Laing visits Waitrose Berkhamsted to launch his confectionery range Candy Kittens