Waitrose supermarkets and department stores group John Lewis boosted its potential profit sharing pot earmarked for distribution among its staff by 25% to £63.3m at the half year stage, it emerged today.
In the first six months of last year, the surplus available for distribution among its 36,000 staff, amounted to £50.5m.
However, a spokesman for the partnership said no decision about the surplus available for sharing would be made until after the final results in March.
Last year, staff shared an £82m profit bonus, representing about 10 weeks’ pay.
Today, John Lewis revealed booming trading in the first six months had boosted pre-tax profits to £94.6m from £78.1m in the corresponding period in 1996.
Sales increased by £73m (10%) in its department stores and £36m (5%) in Waitrose supermarkets.
Chairman Stuart Hampson said: “This is an excellent result in a half-year in which the pattern of our trade has shown an unusually complex picture…….Against this background the supermarket division did well to secure substantial volume growth in their sales increase of 5% – a strong indication of the attraction being offered in our food ranges.”
John Lewis’ department stores enjoyed strong growth with textiles and furniture the star performers, helped by the improved housing market and consumers spending their building society windfalls.
Hampson also commented that: “The retail market remains as competitive as ever, sharpened by the continuing growth in floorspace. Just as important, the “windfall” effect has been seen as a short-term boost to sales, and one which will leave us with some tough figures to chase next year. The current judgement of the Bank that they have done enough on interest rates to head off the risk of rising inflation seems to me to be right.”
PA News 12/09/97
