John Lewis staff may lose bonus for first time in 67 years as boss quits amid profit warning

The bonus was last suspended during World War Two.

John Lewis staff have been warned they may not be paid their usual annual bonus as the retail giant reported a dramatic drop in profits over the Christmas period and chief Paula Nickolds announced her shock resignation.

The John Lewis Partnership, which includes Waitrose, reported a 2% year-on-year loss for John Lewis department stores in the period from November 17 to January 4.

Chairman Sir Charlie Mayfield warned that staff bonuses may be suspended this year for the first time in 67 years.

The Edinburgh John Lewis store.

The bonus, which is usually worth several weeks' pay, was last put on hold during World War Two.

The decision on whether or not to pay out bonuses will be taken by the board in February, Sir Mayfield said.

He added: "The decision will be influenced by our level of profitability, planned investment and maintaining the strength of our balance sheet."

Paula Nickolds, Managing Director of the John Lewis department stores, announced she will step down after 25 years with the retailer.

She was the first female Managing Director in the 152-year history of the chain.

John Lewis is a major retail employer in Edinburgh, with the Leith Street outlet one of the largest stores in the Capital.

The existing store will become an anchor for the £1 billion Edinburgh St James centre, due to open in October 2020.

There will be a new entrance to the store for access via Edinburgh St James.