The John Lewis Partnership is set to give staff a “significantly” lower bonus than last year this week, following tough external pressures.
Staff at John Lewis and Waitrose are expected to receive an annual bonus of between 6% and 7%, down from 10% in 2016, The Guardian reports.
Chairman Charlie Mayfield has previously said the retailer’s determination to maintain a strong balance sheet and accelerate its strategy has had implications for its bonus scheme.
Speaking after the release of its Christmas trading results, he said: ““One of the reasons we commented on [the bonus] is because our Christmas performance and profit outlook are, unusually, not a good guide as to where the bonus will be,” he said.
“This business is about the longer term and our responsibility is to strike the right balance. This year, the right thing is to retain more profit to have the firepower to invest in and futureproof the business.”
He added that the shift from shopping in store to online, deflation and rising input costs are the most significant challenges facing the retail industry.