John Lewis and Waitrose staff have seen their annual bonus cut to six per cent this year, in a bid to make savings for the company.

The legendary staff bonus has always made John Lewis seem like a particularly attractive retailer to work for. But this was the fourth consecutive cut, as reported by Sky.

The cut was despite a rise in both sales and profits over the last year. Pre-tax profits before exceptional items for the year to 28 January came in 21 per cent higher at £370.4m. Pre-tax profit was 65 per cent up at £488.2m, aided by lower pension charges.

But the partnership still slashed bonuses from 10 per cent last year to just six per cent this year, taking them to their lowest level since 1954. The company says it was forced to make the change as it is gearing up for tough trading times in the future.

Partnership chairman Sir Charlie Mayfield said: "Bonus is lower because the board has decided to retain more of our annual profits in order to strengthen our balance sheet.

"This allows us to maintain our level of investment in the face of what we expect to be an increasingly uncertain market this year, while absorbing the costs associated with adapting the partnership for the future."

Like many retailers, John Lewis is preparing itself for tougher times as prices increase due to the fall in the value of the pound following Brexit. Retailers will be forced to increase prices, leaving customers with less cash to spend, or absorb the costs themselves and see profits fall.

There are Waitrose stores in Cirencester, Stroud and Cheltenham. Work is currently underway on a new John Lewis store in Cheltenham on the site of the old Beechwood arcade.

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