Staff at John Lewis will miss out on their usual annual bonuses after the UK retail group recorded a £78 million loss in the last year.
This is only the second time in its long history since 1953 that employees will not be awarded a financial boost.
The group, which runs the department store chain and Waitrose supermarkets, is currently facing rising costs and unprecedented losses.
John Lewis recorded the multi-million pound loss before exceptional items for the year to January 28.
It represented a slump from a £181 million profit in the previous year, with bosses blaming ‘inflationary pressures’.
In a letter to staff, chairwoman Dame Sharon White said: ‘You’ve been exceptional in what has been another very tough year.
‘Two years of pandemic and now a cost-of-living crisis.
‘Inflation has had a big impact on the partnership and sent our costs soaring – up almost £180 million on last year.
‘All in all, this has made for a tough set of results. We made a loss of £78 million.
‘I am sorry that the loss means we won’t be able to share a bonus this year or do as much as we would like on pay.
‘We will continue to help with the cost of living in other ways – the financial assistance fund will stay at £800,000 (a doubling) and there is support for travel, childcare and living costs.’
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