John Lewis and Waitrose staff see bonuses cut to 6% amid 'uncertain market'

John Lewis and Waitrose staff will see bonuses cut to 6% of their annual salary after the firm warned of an "increasingly uncertain market".

The cut, the fourth in a row, will see the retailer's staff share a £89.4 million bonus pot, down from £145 million last year.

The figure compares to 10% of salary last year, 11% in 2015, 15% in 2014 and 17% in 2013.

It is thought to be the lowest level since the 1950s.

Chairman Sir Charlie Mayfield said: "In January, we said Partnership Bonus was likely to be significantly lower this year.

"The board has awarded a bonus of 6%, which is equivalent to more than three weeks' pay.

"Bonus is lower because the board has decided to retain more of our annual profits in order to strengthen our balance sheet.

"This allows us to maintain our level of investment in the face of what we expect to be an increasingly uncertain market this year, while absorbing the costs associated with adapting the partnership for the future."

The group warned in January the bonus would be "significantly lower" than last year in the face of a challenging market outlook, partly linked to the collapse in the value of the pound since the Brexit vote.

John Lewis Partnership, which is owned by the employees of the two retail chains, reported pre-tax profits before exceptional items of £370.4 million for the 52 weeks to the end of January 28, a 21.2% increase on last year.

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