John Lewis has cut bonuses for more than 90,000 employees, despite posting a 24% rise in annual profits.
The John Lewis and Waitrose staff will now earn a bonus worth 10% of their annual salary. That figure was 17% in 2013, but was cut to 15% in 2014 and 11% last year.
However, staff largely reacted positively to the news on Twitter, with many expecting the bonus rate to fall into single figures.
Happy with the Bonus this year, great return for Partners in challenging times #JLPBonus— Alex Harvey (@AHarvey24) March 10, 2016
10% bonus, can't complain #JLPbonus
— caragh (@caraghhxo) March 10, 2016
The cut comes as John Lewis Partnership, which includes Waitrose, reported profits of £435 million for 2015, up by nearly a quarter on 2014. However, the firm warned that excluding exceptional items saw its profits fall by almost £40m to £305.3m. The fall was driven by higher pension costs and lower property profits.
Waitrose posted a profit of £232.6m, down 2% on last year. But excluding property profits, John Lewis Partnership said profits were up 2.5%.
Sir Charlie Mayfield, chairman of John Lewis Partnership, said: "The partnership has delivered a healthy trading performance and increased market shares in challenging conditions."