John Lewis turns around losses after Christmas boost
John Lewis is trading in the green following strong Christmas sales which helped the group recover from heavy losses.
Waitrose owner John Lewis told staff that the company had beaten its £100m profit target for the financial year after just 11 months, the Telegraph first reported.
Strong sales at Waitrose over the Christmas period and cost-cutting at the company under the leadership of Dame Sharon White, helped John Lewis to turn around its financial position following eye-watering losses of £517m last year as the pandemic put a stop to non-essential shopping.
Waitrose beat its December sales target by £60m giving the group a major boost. The strong performance helped to compensate for losses across John Lewis stores, which missed their forecast by £52m as fears about Omicron deterred shoppers from venturing onto the high street.
A leaked memo seen by The Mail on Sunday revealed that the company may revive its annual bonus in March for its 80,000 employees for the first time since 2020. The retail giant, which is owned by staff who are considered “partners” by the company, cancelled its staff bonus last year for the first time in 67 years.
At the start of the century staff would regularly receive payouts worth a fifth of their salaries. The figure dropped in the wake of the financial crisis, falling to below 10 per cent from 2017 amid a tough trading environment.
In a bid to turn the company around Dame White has removed layers of management at the company. John Lewis planned to cut £216m of costs in the latest financial year, but will reportedly miss this target by between £35m and £40m.
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