Staff bonus as John Lewis banks €370m profit

Staff at John Lewis were handed a bonus equivalent to almost eight weeks' pay today, as the british retailer banked profits of £252m (€367.3m).

The 10% hike in pre-tax profits came as sales at its 27 department stores and 174 Waitrose supermarkets jumped 8% to £5.8bn (€8.5bn) in the year to January 28.

The market-busting performance saw its 63,000 staff, who are partners under John Lewis’ worker co-ownership scheme, pocket an annual bonus worth 15% of their salary.

John Lewis said the results came amid the most testing year for the high street in more than a decade, and warned that 2006 would be another tough year.

But it said sales in the five weeks to March 4 were up 8% at John Lewis and 9% at Waitrose.

Last week John Lewis was crowned the most popular store in the UK in a survey of shoppers, while Waitrose came in second.

John Lewis chairman Sir Stuart Hampson said he was “delighted” at the accolade.

“2005 saw some of the most testing retail conditions for well over a decade, but our storming performance in the final quarter delivered a strong improvement in sales and profits for the year,” he said.

“Looking ahead, whilst there is every indication that this year will continue to be a tough one and that retailing in 2006 will not be for the faint-hearted, both divisions have made healthy starts to the new trading year.”