Waitrose may be the ‘nation’s favourite supermarket’, but this does not appear to be impacting on sales, as it reported a six per cent fall in annual profits.
The upmarket retailer revealed a mere 0.4 per cent rise in annual sales as annual profits fell to £215 million.
Managing director Mark Price admitted Waitrose had issues with "price perception" as shoppers think it is much more expensive than rivals such as Sainsbury's.
Sales over the year rose by three per cent to £6.97 billiom boosted by around £120m due to a 53-week 2008.
Like-for-like sales growth fell away in the second half of the year as many customers traded down from premium to cheaper lines.
But staff at the store are reported to be ‘delighted’ with the 13 per cent salary bonus announced for the 69,000 John Lewis Group workers.
The bonus is equal to seven weeks’ pay and, although down from ten weeks last year, staff had not expected a bonus.
Charlie Mayfield, John Lewis chairman, said: "Our bonus is a real bonus, which reflects the actual performance of the business in the year it is awarded. It moves up and down depending on the performance of the business. Other businesses reward in advance of value created. We don't do that."
The John Lewis Group announced a massive 26 per cent fall in pre-tax profits to £279.6m.
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