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| John Lewis scraps bonus for first time since 1953 | John Lewis scraps bonus for first time since 1953 |
| (32 minutes later) | |
| John Lewis has confirmed that staff will not receive a bonus for the first time since 1953 after it was hit by lockdown store closures. | John Lewis has confirmed that staff will not receive a bonus for the first time since 1953 after it was hit by lockdown store closures. |
| The retailer - which also owns Waitrose - said it posted a £55m loss for the six months to 25 July after higher costs offset a 1% rise in sales. | The retailer - which also owns Waitrose - said it posted a £55m loss for the six months to 25 July after higher costs offset a 1% rise in sales. |
| Its chairwoman told staff on Thursday the announcement "will come as a blow". | Its chairwoman told staff on Thursday the announcement "will come as a blow". |
| Even before Covid-19 hit, the chain had warned it might not pay the usual staff bonus as competition ate into profits. | Even before Covid-19 hit, the chain had warned it might not pay the usual staff bonus as competition ate into profits. |
| The last time that the chain, which operates as a partnership, decided not to pay a bonus to its staff was in the aftermath of World War Two. | The last time that the chain, which operates as a partnership, decided not to pay a bonus to its staff was in the aftermath of World War Two. |
| Chairwoman Dame Sharon White said: "We came through then to be even stronger and we will do so again." | Chairwoman Dame Sharon White said: "We came through then to be even stronger and we will do so again." |
| She added: "I know this will come as a blow to partners who have worked so hard this year. The decision in no way detracts from the commitment and dedication that you have shown." | |
| The retailer said store closures during lockdown and customers buying less profitable items, such as toilet paper or laptops, had hit trade. | |
| It estimated that in its first half, John Lewis shops took a hit of £200m in sales, while the wider group saw additional coronavirus-related costs total about £50m. | |
| But in a statement, it said that Waitrose had seen "a return to the weekly shop", with like-for-like sales in Waitrose, which strip out the effect of new stores opening, up 10% year-on-year. | |
| Dame Sharon said the pandemic had brought forward changes in consumer shopping habits "which might have taken five years into five months". |