John Lewis Partners jubilant with 17% bonus announcement

At exacly 9.30am this morning, John Lewis Partners in Exeter and across the country were gathered together to discover the level of this year's bonus. And there was a genuine explosion of enthusiastic cheers in the Exeter branch when it was announced they were to receive a 17% bonus - equivalent to nearly nine weeks' pay - higher than the media had been suggesting prior to the announcement and a full 3% over and above last year's bonus. In the current economic climate you might wonder how John Lewis is able to provide such a generous bonus scheme, however the John Lewis Partnership have also announced gross sales of £9.54bn, up £811.8m, 9.3% and Group operating profit of £452.4m up £59.1m, 15.0%. 

The special privilege of opening the envelope to reveal the level of bonus was given to Birthday girl Elaine Puttock, who had not yet decided on what she would be spending her bonus on but said she might give herself an extra birthday treat. 

Kate Connock, branch manager of John Lewis Exeter, said: “Against the backdrop of a challenging retail environment we are pleased to have put in a robust performance this year. Since opening in October 2012, John Lewis Exeter has been warmly welcomed by the Devon and Cornwall community. Both womenswear and menswear and fashion accessories have been the outstanding successes so far, with customers responding most positively to the designs produced by John Lewis. We have seen pleasing interest in both our electrical and home furnishing assortments due to our service offer and commitment to be Never Knowingly Undersold.

“It has been a great start for John Lewis Exeter and I would like to thank all of our Partners who continue to focus on building lasting relationships with customers and provide the high standards of service and shopping experience our customers expect.”

Kate told The Exeter Daily, "It's not very exciting, but I'll be putting my bonus into John Lewis' Bonus Share scheme, which offers partners a tax-free way of investing our bonus. It enables Partners to invest all or part of their bonus without having to pay income tax and national insurance, providing they keep their money invested for five years."

She continued, "We are thrilled to have achieved everything we had hoped we could achieve. The combination of in-store trading and online shopping means our customers get an all-round positive experience. We have stuck to what is important and that is showing through in terms of customer satisfaction.

"Our biggest challenge so far has been training up 300 new Partners into the way of John Lewis, but everyone has excelled themselves. And the fact that Partners are not employed on a commission basis gives the customer assurance that the service is honest and fair. We have the added bonus that we have been shortlisted for Retail Week's Store Design of the Year Award." 

Kit Washington, section manager, customer support, John Lewis Exeter, has been a Partner (member of staff) for five years and recently returned to his home city of Exeter to work in the new John Lewis shop when it opened in October 2012. This year he will be spending his bonus on a new road bike as he prepares to embark on a number of organised rides for charity.

Arranged by another Partner at John Lewis Exeter, Kit will take part in the 100 mile bike ride around Exeter and Exmoor with a group of colleagues to raise money for FORCE Cancer Charity – a charity which the shop supported through its charitable giving scheme, Community Matters.

Kit says: “London 2012 really inspired me to take up a new sport so when my colleague suggested this challenge I thought it was the perfect opportunity to do so. I spent last year’s bonus on a new guitar and I’m still playing it, which bodes well for the bike! The John Lewis bonus announcement is a real focal point and I always find myself reflecting on the past twelve months and then thinking ahead to how we can build on the successes for the year ahead.”

Meanwhile Jemma Sloman (27), section manager, branch operations, John Lewis Exeter, has been a Partner (member of staff) for four and a half years. She started at John Lewis Leicester but when the opportunity came to transfer to the new Exeter shop she jumped at the chance as it is where she grew up and her parents still live.

Jemma will be putting her bonus towards a once in a lifetime holiday to America where she’ll be spending three weeks road tripping along Route 66 with a friend who works at John Lewis Leicester.

Jemma says: “I normally use my bonus to pay off bills but this year I thought I would treat myself and do something I’ve always wanted to do. Going to Las Vegas and exploring Chicago is what I’m most looking forward to. The John Lewis bonus really captures what co-ownership is all about – you reap the benefits of the hard work and effort you’ve put in throughout the year.”

However, it was Laura Perryman, a chef at John Lewis Exeter, who trumped everyone by announcing she was to be putting her bonus towards her wedding next year at Gipsy Hill in Exeter. 

Charlie Mayfield, Chairman of John Lewis Partnership, commented: “This has been a good year for the Partnership with growth in sales and profit above our expectations. Both Waitrose and John Lewis gained market share for what is now the fourth consecutive year.  As a result I am delighted that 84,700 Partners will receive a bonus of 17%, equivalent to nearly 9 weeks’ pay.

"We were encouraged by the acceleration in the rate of sales growth during the year, particularly in the final quarter. Although the market remains challenging, the Partnership has adapted quickly and successfully and we saw the benefits this year.  We have stepped up innovation in new products, there’s been a continuing focus on value and sustained and rapid growth online.  This resulted in over 1.5 million more customers choosing to shop with Waitrose or John Lewis than last year.

"We see this as a time of significant opportunity in a changing market.  Behind the scenes, therefore, there’s a quiet revolution underway in our supply chain, IT and support functions.  Our investment in these areas is up substantially and that commitment continues into 2013.  In recent years, the Partnership has consciously invested to have the right skills, systems and organisational structures to be able to offer customers what they want in a fast-changing market.”

Looking forward, Mr Mayfield said: "Although the market remains subdued we see more stability in customer demand and further opportunities to grow market share in both John Lewis and Waitrose.  We have seen a good start to 2013/14.  After five weeks, Partnership gross sales are 10.5% higher than last year.  Waitrose gross sales have increased by 8.1% (6.4% like-for-like, excluding petrol) and John Lewis gross sales are 16.0% higher than last year (13.7% like-for-like).

We expect our sales growth to continue this year, albeit less strongly than in 2012/13, and we are planning a significant step up in total investment, with a particular focus on our supply chain, technology and systems.  These investments are central to our strategy of remaining at the forefront of changes in retail today whilst preparing the Partnership for tomorrow."

The results are not just good news for John Lewis Partners, however, but for Exeter as a whole. Announcements of large retailers going into administration seem an all too frequent occurance in today's market, so to hear of one that has got the balance right should be a beacon of light to others. To anyone who has forgotten the building prior to it being renovated by John Lewis, we have attached an image of the eyesore that was the derelict building before work began at the beginning of 2011.