Daily reviews

17.09.2020

John Lewis scraps staff bonus for the first time in over 70 years

John Lewis scraps staff bonus for the first time in over 70 years

The prized incentive will be scrapped in 2021

Stocks impacted: John Lewis Partnership Plc (JLP)

In another sign that the coronavirus pandemic is weighing on British retailers, John Lewis Partnership Plc decided not to pay staff an annual bonus after a first-half loss. The retailer made an interim loss of £55 million, similar to that suffered in the comparable period last year. At John Lewis department stores, total trading sales fell 9.7% to £1.86 billion and like for likes were down 9.5%. The last time that the company decided not to pay a bonus to its staff was in the aftermath of World War Two. The company reported that the prized incentive will be scrapped in 2021. John Lewis now expects a small loss or a small profit for the full year as stores have reopened, but sales remain 30% down on last year. Its worst-case scenario remains a sales drop of 5% at Waitrose and 35% at John Lewis.

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