The John Lewis Partnership, which includes the renowned department store chain and Waitrose supermarkets, has reported a significant deepening of its financial struggles, with half-year losses nearly tripling to £88 million. This considerable deficit, up from £30 million in the same period last year, was recorded despite a rise in overall sales, a performance that highlights the intense challenges the business is facing. The company attributed the poor result to a combination of exceptional costs, including £54 million spent on a major business restructuring programme which involved redundancies and reorganising its operations. Further compounding the financial pressure were new regulatory charges, such as a £29 million hit from the government's new plastic packaging tax and higher national insurance contributions. Despite these financial setbacks, the company remains optimistic, noting that its ongoing turnaround plan has led to increased sales and improved customer satisfaction. The Partnership maintains that its substantial investment in updating its stores and digital infrastructure is necessary to return to profitability by the end of the full financial year, a goal which would allow for the reinstatement of the cherished staff bonus.
BBQ - A core part of the John Lewis Partnership's business model is providing its employees with an annual bonus. Analyse why the company's decision to withhold this bonus due to financial losses could have a negative impact on its human resources.
