John Lewis is once again denying staff their bonuses – and warning there could be job losses

JOHN LEWIS has once again denied staff their cherished bonus – and warned yesterday that there could be further job cuts in the battle to revive its fortunes.

The employee-owned retail group, which has 70,000 staff across its department stores and Waitrose supermarkets, said there would be no pay rise as it finally returned to profit after three years of losses.

5

5

5

It means the John Lewis Partnership has not paid a bonus for three of the four years that chairman Dame Sharon White has been at the helm, much of that during the business crisis pandemic.

Before her arrival in 2020, staff had received a cash boost worth a month’s salary for 68 years.

The group has spent £116m on increasing staff minimum wages by 10 per cent to £11.55 per hour, but that still falls behind the £12 per hour minimum paid by Tesco, Asda and Aldi .

Dame Sharon said the group, which should be guided by providing “valuable and satisfying employment in a successful business”, offered employee benefits including subsidized holidays.

She insisted her “plan is working” after the group announced a pre-tax profit of £56 million, up from a loss of £234 million the year before. It has closed 16 department stores during the pandemic and lost a total of 4,000 jobs due to the closures and cuts at its headquarters.

Reports suggest another 11,000 staff could go there next one five years in which the retailer aims to make its stores more efficient and introduces additional robotics into its warehouses.

Dame Sharon said there was “no target” for job losses, but added that “there will inevitably be less need for some roles in the coming years”.

And in a marked shift from Dame Sharon’s target of generating 40 per cent of revenues from outside retail, new CEO Nish Kankiwala said its “refreshed strategy” would now be “unapologetically focused on retail”.

The company also scrapped its 2030 goal for non-retail profits, critics in a move highlighted how much of a distraction Dame Sharon’s ambitions to move into garden centres, housing and financial services had become.

Mr Kankiwala said the opportunities could make the business less “cyclical” for consumer confidence, while Dame Sharon said the group was still committed to housing and financial services as part of a “family of companies”.

Dame Sharon, who will step down at the end of her five-year term as chairman in February next year, could not say when the first John Lewis house would be built and ready for tenants.

Moonpig AI map help

HARTFELT messages written by artificial intelligence for loved ones help drive sales at Moonpig.

5

The greeting card company said it had strong sales during Valentine’s Day and Mother’s Day as more people opted to use its AI “smart text” for personalized cards when they struggled with what to write.

A user’s request for a romantic message for a golf fanatic resulted in: “Forget all the other guys, you’re the hole-in-one for me! Thank you for being my caddy through the ups and downs.”

But insiders admitted that AI-written posts often require editing.

Moonpig said the use of technology would help increase revenues and profits and meet City expectations.

Shell in stall at eco-target

SHELL has watered down one of its climate pledges to focus on growing its massive gas business.

5

CEO Wael Sawan said the world risks energy shortages if there is no investment in oil and gas drilling.

His comments came in the same week that the British government said it would have to open new gas-fired power stations plants or facing a “real risk of blackouts”.

Shell now plans to reduce the “net carbon intensity” of the energy it sells by 15 to 20 percent by 2030, down from its previous target of 20 percent.

Carbon intensity measures allow Shell to offset the carbon produced by its oil and gas operations with the less polluting parts of the business.

Mr. Sawan has angered environmentalists by putting shareholder returns at the top of his priority list.

Shell also revealed that Mr Sawan received a total of £7.94m, £2m less than his predecessor’s 2022 salary.

It’s open and closed

A TOTAL of 14,081 stores closed in 2023, an average of 39 per day, as major chains, including Wilk0, closed their doors.

The figures include 583 bank branches, 722 pubs and 787 pharmacies, according to a report by PWC and the Local Data Company.

The closures were partially offset by 9,138 new stores, mainly in retail parks and shopping centers.

Takeaways, coffee shops and discount supermarkets were the most common new stores.

Magnum power

SELLING more Magnums, Lynx and Marmite will pay off for the UNILEVER boss, who could rake in almost £15million if he boosts the share price.

Hein Schumacher will earn £7.3 million if he meets minimum sales growth, shareholder returns and sustainability targets, and up to £11 million for reaching maximum targets.

But his reward will be as much as £14.8m if he also increases the share price by 50 per cent in three years.

Unilever’s share price has fallen by 9 percent in the past five years.

---

THE maker of Irn Bru and Rubicon juice is cutting almost 200 jobs. AG BARR said it is changing the way it sells products to retailers and as part of the overhaul it will close its direct sales operations and an office in Leeds.

---

It’s Delivergrew

DELIVEROO has cut its losses as the food delivery company signed up more retailers.

Losses fell to £10.9m, compared to £231m in 2022, and cash flow is expected to be positive this year.

Inflation and more expensive restaurant meals saw the average order rise to £24.30. Founder Will Shu told The Sun it wants to ensure customers pay the same price as in supermarkets and restaurants. He said: “The sector is suffering from a lack of price integrity.”

Grocery orders now account for 13 percent of sales.