John Lewis staff bonus scrapped for the first time since 1953 - here’s why

Department store chain John Lewis has confirmed that staff will not receive a bonus this year, the first time since 1953, after stores were closed during the lockdown period.

The retailer had warned that it may not pay staff the usual bonus before the coronavirus pandemic hit due to competition eating into profits, but the store closures hit trade further.

Similar to other companies also hit hard by lockdown, the partnership, which also owns Waitrose, has had to cut more than a thousand jobs as it closes some stores for good.

Fall in sales

The company said it posted a £55m loss for the six months to 25 July, after higher costs offset a 1 per cent rise in sales, estimating that in its first half, John Lewis shops took a hit of £200m in sales.

John Lewis suffered a 10 per cent fall in sales for the six months to July, but supermarket chain Waitrose saw sales rise by nearly 10 per cent.

The wider group in general saw additional coronavirus-related costs total around £50m.