Job losses are on the horizon on the John Lewis Partnership, which incorporates Waitrose and John Lewis outlets, as the corporate posted an annual lack of £234m.
No element was given on the placement or variety of job cuts that will probably be made.
“As we need to become more efficient and productive, that will have an impact on our number of partners. That’s a massive regret to me personally,” firm chairman Sharon White mentioned.
The John Lewis Partnership is employee-owned by everlasting employees who’re often known as companions. Those companions usually get an annual bonus cost.
But this yr no bonus will probably be given because of the firm making a loss.
“I am sorry that the loss means we won’t be able to share a bonus this year or do as much as we would like on pay,” Ms White mentioned.
Last yr bonuses value £46m had been paid.
A lack of £78m was recorded for the monetary yr which led to January however when distinctive prices had been added the loss reached £234m. Exceptional prices included the write down in worth of Waitrose shops.
Costs had been despatched “soaring” all year long, Ms White mentioned, a rise of almost £180m on the earlier yr.
At the identical time, gross sales had been down 2% and totalled £12.25bn. While John Lewis gross sales had been sturdy, Waitrose gross sales fell 3%. While there have been extra prospects – 20 million of them, that means a rise of 800,000 customers – they purchased much less, in an indication that customers had been transferring grocery spending to low cost retailers comparable to Lidl and Aldi.
Customers had been additionally shopping for much less on-line because the pandemic period development was reversed, the outcomes mentioned.
Ms White emphasised that the corporate steadiness sheet remained sturdy with £1bn of money and entry to a £420m credit score facility.
A complete of £32m was spent supporting companions with a price of dwelling cost and free meals over winter, the outcomes mentioned.
Staff obtained a £500 professional rata value of dwelling cost in addition to free meals.
Source: information.sky.com”
