John Lewis denies staff their bonus again — and warns there may be job losses

JOHN LEWIS has denied staff their cherished bonus again — and warned yesterday there may be more job losses as it battles 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 salary boost as it finally returned to profit after three years of losses.

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

Before her arrival in 2020, it had given staff a cash boost worth a month or two’s salary for 68 years on the trot.

The group has spent £116million raising minimum staff wages by 10 per cent to £11.55 an hour but that still puts it behind the £12-an-hour minimum paid by Tesco, Asda and Aldi.

Dame Sharon said the group, which is supposed to be guided by providing “worthwhile and satisfying employment in a successful business”, offered staff perks including subsidised holidays.

She insisted her “plan is working” after the group revealed pre-tax profits of £56million, against a £234million loss the previous year. It shut 16 department stores during the pandemic and has shed 4,000 jobs in all with the closures and cuts at its head office.

Reports suggest another 11,000 staff could go in the next five years as the retailer strives to make its shops more efficient and it brings in additional robotics to warehouses.

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

And in a marked shift from Dame Sharon’s goal of generating 40 per cent of income from outside retail, new chief executive Nish Kankiwala said that its “refreshed strategy” would now be “unashamedly focused on retail”.

The business has also axed its 2030 target for non-retail profits, in a move critics said 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” to consumer confidence while Dame Sharon said the group was still committed to housing and financial services as part of a “family of businesses”.

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

Moonpig A.I. card help

HEARTFELT messages written for loved ones by artificial intelligence are helping to drive sales at Moonpig.

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The greeting cards company said that it had strong sales over Valentine’s Day and Mother’s Day as more people opted to use its AI “smart text” for customised cards when struggling with what to write.

One user’s request for a romantic message for a golf fan resulted in: “Fore-get about all the other guys, you’re the hole-in-one for me! Thanks for being my caddy through the ups and downs.”

But insiders admitted the messages written by AI often need editing.

Moonpig said its use of technology would help revenues and profits to keep rising and meet City expectations.

Shell in stall on eco aim

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

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CEO Wael Sawan said the world would be at risk of energy shortages unless it invests in drilling for oil and gas.

His comments came the same week the UK Government said it would have to open new gas power plants or face a “genuine risk of blackouts”.

Shell now plans to reduce the “net carbon intensity” of the energy it sells by 15 to 20 per cent by 2030, rather than its previous 20 per cent target.

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

Mr Sawan has angered environmental campaigners by putting shareholder returns at the top of his priorities.

Shell also revealed Mr Sawan was paid a total of £7.94million, £2million less than his predecessor’s pay in 2022.

It’s open and shut

A TOTAL of 14,081 stores shut in 2023, an average of 39 per day, as big chains including Wilk0 shut 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 centres.

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

Magnum force

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

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

But his reward will be a whopping £14.8million if he also boosts the share price by 50 per cent over three years.

Unilever’s share price has fallen by 9 per cent over the last five years.

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

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It’s Delivergrew

DELIVEROO has narrowed its losses as the food delivery firm signs up more retailers.

Losses shrunk to £10.9million compared with £231million in 2022, and it expects to be cashflow-positive this year.

Inflation and more expensive restaurant meals pushed up the average order 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 industry suffers from a lack of price integrity.”

Grocery orders now account for 13 per cent of its sales.