John Lewis cuts staff bonus to lowest level since 1953. Workers will receive bonus worth 3% of annual pay as underlying profits fall 45.4%. The John Lewis Partnership has cut its staff bonus to the lowest level in 66 years, as it said underlying profits had slumped. The company said 83,900 workers, known as partners because they jointly own the business, would receive a bonus worth 3% of annual pay. All partners, from leading executives to Saturday shelf-stackers, receive the same percentage bonus. Last year staff were awarded 5% after profits fell at the group, which includes the John Lewis department stores and Waitrose supermarkets. This year underlying profits plunged 45.4% to £160m in the year to the end of January. The bonus was first paid in 1920. The company also said it was selling a further five unprofitable Waitrose shops to other retailers, with the loss of 440 jobs. The stores will close in June and are located in Torquay and Teignmouth in Devon, Barry in Glamorgan, Ashbourne in Derbyshire, and Blayby in Leicestershire. It follows the closure of five shops last year.
Primark tells 200 UK staff to move to Dublin or risk redundancy. The move affects the fashion brand’s office in Reading, with roles to be relocated to Ireland. Budget fashion chain Primark has told 220 of its staff in the UK that they must agree to move to Ireland or risk being made redundant. The changes will affect staff at Primark’s UK office in Reading, with roles in buying, sourcing quality control, design and merchandising set to be shifted to Dublin from September. Reading-based staff have been offered the chance to relocate to Ireland in a reorganisation intended to help the company’s push for international expansion, but they have also been told they may face redundancy as a “last resort” if they do not. Primark, owned by Associated British Foods (ABF), announced the decision just days after saying that it expected profits in the first half to be well ahead of previous expectations, after it gained market share and improved its margins.
Greggs sales top £1bn for first time as it bucks high street slowdown, Pre-tax profits at UK’s largest bakery chain rise by 15% to £82.6m in 2018. Greggs (GRG) had a milestone year in 2018 with sales exceeding £1bn for the first time, while the launch of its vegan sausage roll provided a strong start to 2019. The UK’s largest bakery chain said total sales rose by 7.2% year-on-year in 2018 to £1.03bn, compared with £960m in the previous year. Greggs has bucked the high street malaise in recent months, with strong demand for its breakfast ranges as well as its steak bakes and sausage rolls. It scored a marketing victory in January when it launched its vegan sausage roll. The Quorn-filled pastry attracted a large social media following and shops rapidly sold out.
