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John Lewis has given a 17 per cent bonus to all partners this year
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John Lewis award 17 per cent bonus to all partners

March 07, 2013

John Lewis has given a 17 per cent bonus to all partners this year equivalent to nearly nine weeks’ pay.

Managing director of John Lewis Reading, Gordon Stenton said: “Against the backdrop of a challenging retail environment we are pleased to have put in a robust performance during the year at John Lewis Reading.

“The introduction of new fashion brands including Alice Temperley, Seasalt and Ghost and the addition of new services including a beauty retreat, which offers a wide range of treatments have clearly proved winners with our customers following the recent £20 million refurbishment of the branch.

"Childrenswear also performed particularly well throughout the year as did our home furnishings department where our strength in John Lewis own brand merchandise was a key feature of our overall success.

“A review of last year wouldn't be complete without mentioning London 2012 and the glorious summer of sport. These together with the digital switchover prompted customers to explore our extensive range of televisions in our new technology department on the ground floor.

“Our partners remain central to our success and we continue to work hard on developing our team to ensure that John Lewis Reading maintains its reputation as a great place for our customers to shop and our Partners to work.”

Financial Highlights

John Lewis Partnership

Gross sales of £9.54bn, up £811.8m, 9.3 per cent

Revenue of £8.47bn, up £706.9m, 9.1 per cent

Group operating profit of £452.4m up £59.1m, 15.0 per cent

Profit before Partnership bonus and tax of £409.6m, up £55.8m, 15.8 per cent

Partnership Bonus of £210.8m; 17per cent of salary (equal to nearly 9 weeks’ pay)

Net debt of £371.9m, down £205.4m (35.6 per cent)

Waitrose

Gross sales of £5.76bn, up £363.5m, 6.7 per cent

Like-for-like sales (excluding petrol) up 3.4 per cent

Revenue of £5.42bn, up £343.8m, 6.8 per cent

Operating profit of £292.3m, up £31.7m, 12.2 per cent

John Lewis

Gross sales of £3.78bn, up £448.3m, 13.5 per cent

Like-for-like sales up 10.5 per cent

Revenue of £3.05bn, up £363.1m, 13.5 per cent

johnlewis.com gross sales of £959m, up £278m, 40.8 per cent

Operating profit of £216.7m, up £58.8m, 37.2 per cent

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Ding, you are correct in saying that bankers bonuses are linked to "performance", the problem is that in the surreal world of Investment Banking, performance is measured in terms of such short term gains and money flows as to be meaningless.

The so called investments which result in these bonuses turn out to be worthless gambles, soon after the bonuses are awarded. They even lied about the inter bank lending rates to the Bank of England.

Investment banking and retail banking must be completely separated as soon as possible.

cadoxton conner
07/03/2013 at 22:01

Dong-Ding: blaming the previous govt is no answer or even a credible argument. The economic collapse was caused by the financial sector. Labour didn't cause the collapse - which was global and had it's origins in the US - anymore than Obama caused it in the states. But such a reality and historical fact doesn't aid the rightwing propaganda machine.

The financial sector kept dreaming up ever elaborate schemes to make money - maximising risk in pursuit of maximising profit and bonuses - that ultimately not even the CEO's of the bank understood what was going on.

Hence the subprime mortgage crisis in the states, and the start of our troubles over here with thr collapse of Northern Rock.

If Labour, George Bush, and Obama hadn't taken the action they did then millions of people here and abroad would have lost everything - homes, savings, pensions, jobs, the lot.

Believe me, you think things are bad now?Imagine the apocalypse we'd be in if all the banks that were bailed out had been allowed to fail. The troubles in Greece would look like an argument over spare change.

Banks that reward failure - tax payer funded banks - are little more than crooks.

A business model like John Lewis - where everyone has a stake in the success of the business, and is rewarded appropriately - is worth applauding as an example of how to do business with dignity and respect.

Winstanley, Bracknell
07/03/2013 at 19:42

Dong-Ding, When was the last time the Banks recorded a profit? I think you'll find that peoples gripes coincide with when the Banks started losing money, but still paid fat bonuses.

TilehurstSouthbank, Tilehurst, Reading
07/03/2013 at 16:58

No cadoxton, their bonus is linked to their, and their team's, performance during a year. The same way that most people's bonus operates.

The main reason that the economy is in a mess is due to the last Labour government.

Dong-Ding, 3rd world slum
07/03/2013 at 16:31

Isn’t it refreshing to have something positive to comment on? Shame more companies don’t do the same. Nice one JL!

HK, bracknell
07/03/2013 at 16:12

Ding: "It's a bit like the bankers who receive their bonus based on how their team is doing".

No Ding, that's not how the banks work at all. They get bonuses regardless of how well they are doing.

That's one of the main reasons why the economy's in a mess.

cadoxton conner
07/03/2013 at 16:00

Great Company!

Kez S
07/03/2013 at 15:22

Excellent result for a great company!

Tom Edwards, Bracknell
07/03/2013 at 14:55

I chose to work at a Waitrose branch many (20+) years ago, the hours were often long and relatively poorly paid compared to my peers in the BMW Warehouse for example. The upside was the bonus which we did work for, getting a lump sum that I would have never saved over the year. I like the scheme, I do think it is different to the banks where I believe some are well salaried and then get a nice bonus, but good luck to them. If someone is stupid enough to pay it someone will take it. The JLP bonus, well earned, I enjoy shopping at "Heelas" (as was) and the occasional trip to Waitrose.

Wobbly Bob
07/03/2013 at 13:38

If the country run their business like this we won't be in this mess. Not sure but I think the top guy gets 20 times more than the lowest paid worker Therefore like the MPs and council they cant give themselves big pay increases willy nilly.

Charles Thorn, Tilehurst
07/03/2013 at 13:33

TilehurstSouthbank, Tilehurst, Reading

I see nothing wrong with the staff being rewarded for good performance. I'm just merely commenting on the hypocritical nature of some people who are congratulating this yet when a bank makes a profit they jump up and down and want them all hung drawn and quartered.

Dong-Ding, 3rd world slum
07/03/2013 at 12:47

One of the rare occurrences nowadays where success and hard work is rewarded. Well done and enjoy the fruits of your labour!

IB Fudger
07/03/2013 at 12:40

Dong-Ding, the Banks again recorded massive losses, that's why. If John Lewis Partnership does well, why shouldn't the staff be rewarded.

ritchierat comments are spot on.

TilehurstSouthbank, Tilehurst, Reading
07/03/2013 at 12:39

I don't agree with any state owned bank getting any bonuses until they've paid back the taxpayers. However, why should a non-state owned bank not pay out bonuses that it sees fit? That is a far better comparison to make with John Lewis.

Dong-Ding, 3rd world slum
07/03/2013 at 12:32

Dong-ding, it clearly states the profits of the John Lewis partnerhsip above so these are clearly earned and deserved bonuses.

RBS lost £5.2 Billion but still paid out £215million in bonuses... you think that's right?

You're not comparing 2 identical things.