Staff at the John Lewis Partnership are facing severe cuts in their annual bonuses as the retailer expects to reveal reduced profits in its full-year results on Wednesday.

The John Lewis Partnership, owner of the John Lewis department store group and Waitrose supermarket chain, employs 70,000 staff and last year gave bonuses equating to 20 per cent of their salaries.

This year it could fall to 12 per cent or lower as the group’s profits are expected to fall by 30 per cent.

In the six months to July 31 profits dropped 27 per cent to£108m and the retailer has warned of a “tough year ahead”.

Waitrose is trying to help its shoppers through the recession by launching a budget range of products called Essential Waitrose.

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