2020 has destroyed many retailers across the globe – all thanks to the havoc created by the deadly pandemic. And there seems to be no respite!
John Lewis Partnership PLC has announced that it will be now cutting its staff bonus for the first time in more than 60 years – a move that was expected after it fell to a massive loss in the first half.
Dame Sharon White, Chairman, John Lewis Partnership PLC, has further corroborated the same by saying that it could be couple of years without bonus.
She also said that the company would start paying bonus again once the debt goes down and profits touch £150 million.
The retailer slumped to a pre-tax loss of a disappointing £635 million after writing down the value of its stores by £470 million.
The e-commerce sales accounted for 60 per cent of its sales, while its contribution was 40 per cent during the pre-pandemic period. The retailer has made it clear many times that it has to look beyond bricks-and-mortar stores to survive.
John Lewis also said that it will be permanently closing 8 stores, which would put around 1,300 jobs at risk.
However, the retailer ruled out any further job cuts at its head office and also said that it had enough funds in the bank.
It substantiated the statement by saying that while it had £1.5 billion before the pandemic started, the amount has now risen to £2.1 billion as it has borrowed lot of money.
The Chairman also gave hints that there are some business strategies, which she would talk about next month – one of them being converting extra space in shops to housing.
Besides apparels, John Lewis is also known for furniture, watches and jewellery, amongst others. It generates revenue of £10.15 billion.