John Lewis has warned it could close shops as a plunge in profits forced it to cut staff bonuses to their lowest level in almost 70 years. The retailer, which also owns Waitrose, has launched a review of the business which it said would involve "right sizing" its stores across both brands. The review would involve store closures "where necessary" as well as space reduction in existing stores, it said. The John Lewis Partnership is owned by its staff - known as partners - who usually receive a bonus each year. This year, staff bonuses have been set at 2%, the lowest since 1953 when it paid no bonus. Profits at the partnership dived by 23% last year to £123m - the third year in a row that profits have fallen - as it continued to struggle with the slowdown in consumer spending. The key competitive edge John Lewis has is customer service, that is delivered by its staff. If you take away part of their remuneration then your customer service levels are likely to be impacted.
