John Lewis scraps Christmas Bonus for the first time since 1953
Lockdown and the effect of coronavirus has resulted in a loss of £635 million.
Staff at John Lewis Partnership will not receive a bonus for the first time since 1953 after the group made huge losses.
The half-year results show the retailer posted a massive £635 million pre-tax loss for the 6 months to July.
That figure includes the value of their stores dropping by £470m as well as other exceptional items.
John Lewis Bonus scrapped
Dame Sharon White, chairman of the retail group, told partners on Thursday that the announcement “will come as a blow” as she told staff about the lack of bonus this year.
The last time the business didn't pay out a bonus was in 1953 in the aftermath of World War Two.
John Lewis and Waitrose stores closing
Eight John Lewis stores will not reopen after being closed through the pandemic, putting 1300 jobs at risk.
The retailer also said it planned to close three Waitrose stores at Ipswich Corn Exchange, Caldicot and Shrewsbury, while selling Waitrose Wolverhampton to Tesco.
Changing Shopping habits due to Covid-19
Dame Sharon said: “The pandemic has brought forward changes in consumer shopping habits which might have taken five years into five months.
“Both brands entered the crisis with strong and established online businesses and in the case of Waitrose, plans for expansion well under way in preparation for the end of the relationship with Ocado.
“Our digital businesses have been key to underpinning our first half performance.”