Record bonuses of more than £2,000 look certain to be paid out to staff at John Lewis this spring after the group today revealed a sales rise of nearly 5 per cent for the second-half of its financial year.
The privately-owned retailer continued to buck the high street gloom, saying that demand for electricals, clothing and even furniture was continuing to climb at its 26 department stores and internet site.
Figures showed that sales in the past week, the last of the 26 weeks to January 26, rose 6.1 per cent, meaning that the average growth in the second half at John Lewis was 4.8 per cent.
Andy Street, the managing director, said: “Records fell by the day as we closed a great year’s trade with another confident week.”
Sales at Waitrose, the John Lewis-owned supermarket chain, were up 6.7 per cent in the week, delivering a 6.4 per cent rise for the second half.
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The performance almost certaintly means that the John Lewis group is heading for its third consecutive year of record profit.
The 70,000 staff at the John Lewis and Waitrose chains are likely to recieve a profit share of about one fifth of their salary, an estimated average of more than £2,000.
John Lewis believes that the annual bonus to its ‘partners’ is one of the reasons it has been able to beat its competitors, given the extra motivation of the workforce.
Under Charlie Mayfield, the new John Lewis chairman, the group wants to double in size over the next decade.
Waitrose has already signalled plans to open stores in the Middle East under a franchise agreement. It is close to overtaking Somerfield as Britain’s sixth biggest supermarket chain and its success has been seen as one the reasons for slower growth at Tesco and J Sainsbury.
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John Lewis has also upped investment in John Lewis Direct, its internet and catalogue business. Sales on the site in the 26 weeks to January 26 were up 45.8 per cent on the same period last year.