John Lewis 'warns it will miss profit targets this year after disappointing festive sales - as staff say they no longer expect annual bonus'

John Lewis has warned it could miss profit targets this year following a disappointing festive period. 

The partnership, which includes Waitrose and the John Lewis department stores, told staff it had fallen short of sales and profit expectation during the Christmas rush. 

It comes as footfall plunged on the high street amid the gloomy economic fallout following Chancellor Rachel Reeve's record £40billion tax raid last year. 

The apparent slump in sales now means that John Lewis appears unlikely to hit its £131million profit goal for the year. 

The company blamed 'lower consumer confidence and weaker than expected market confidence' for missing out on its sales targets. 

According to an internal document seen by the Telegraph, the company said: 'Both John Lewis and Waitrose missed their sales targets.' 

The glum outlook, revealed on Thursday, reportedly left staff worried, with one insider telling the newspaper they no longer expected to receive a bonus this year. 

However, despite the disappointing results, John Lewis claimed it had still out performed its rivals. 

The high street giant, long favoured by Britain's middle class, appointed former Tesco boss Jason Terry (pictured) as its chairman last September

The high street giant, long favoured by Britain's middle class, appointed former Tesco boss Jason Terry (pictured) as its chairman last September

The partnership had been left struggling under former chairman Dame Sharon White (picture), losing money for three years in a row before returning to profit in 2023.

The partnership had been left struggling under former chairman Dame Sharon White (picture), losing money for three years in a row before returning to profit in 2023.

But news of the slump in sales will come as a blow for the company's hopes of bouncing back and improving its finances.

The partnership had been left struggling under former chairman Dame Sharon White, losing money for three years in a row before returning to profit in 2023. 

The high street giant, long favoured by Britain's middle class, appointed former Tesco boss Jason Terry as its chairman last September after losing ground to rival Marks & Spencer. 

Peter Ruis, a veteran of the fashion industry, was also drafted in to run the partnership's department stores. 

John Lewis had said in September that it was expecting a significant rise in profits for the year to January.

Latest figures showed that last year the retail giant recorded a pre-tax profit of £56million - a huge turn around from the staggering £234million loss the previous year. 

The partnership is continuing with its drive to boost sales, and has sweeping plans to overhaul and modernise its stores. 

Waitrose aims to open 100 new shops by 2029. It also intends to refurbish and update half of its existing stores.

John Lewis has warned it could miss profit targets this year following a disappointing festive period (file picture of one of its department stores in Glasgow, Scotland)

John Lewis has warned it could miss profit targets this year following a disappointing festive period (file picture of one of its department stores in Glasgow, Scotland)

And in another shake-up, John Lewis brought back its 'never knowingly undersold' price promise. 

The initiative, which sees customers being refunded the difference if they find a cheaper price for an item at a rival store, was ditched under the leadership of Dame Sharon. 

'Considerable improvement' had been recorded in September at the half-year financial results. 

In August, John Lewis announced it was axing 153 jobs this year as part of a shake-up of team members. 

As part of the revamp, the company also invested in £5million worth of headsets to help improve communication.

The department store chain said the shake-up would ensure staff 'are in the right place, doing the right tasks at the right time'.

Removing 'unnecessary tasks' and a multimillion pound investment in new technology - including the use of digital headsets - will make employees' roles 'easier', John Lewis said.

The job cuts will impact one per cent of its workforce with the firm saying it will be met through voluntary redundancy and natural attrition. 

A John Lewis spokesman said: 'As we said in September we remain on track to deliver full year pre-exceptional profits significantly above the £42million we reported in 2023-2024 and we will update on our performance at our results in March.'