By Daniel Hunter
The John Lewis Partnership retail group have reported an 8.7% fall in their annual profits.
As capital spending increased, profits fell, and for the first time in three years bonuses have been cut.
However, it was not all bad news, with a 3% increase in sales at the group's department stores, and an 8.6% increase in sales at Waitrose stores.
However, the Partnership said increased investment in its online business and new stores openings held back profits.
"Profound changes are taking place in the retail sector and importantly this was a year when we upped the pace of innovation and investment," said Chairman Charlie Mayfield.
"That came at the price of some short-term profit, but leaves us in a good place at the start of this year."
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