John Lewis boss rings alarm bells over upcoming wage rules change
Major UK retailer John Lewis voices its concerns about next years wage increases impact on business costs. Company faces extra pressure while trying to improve its market position and boost sales
John Munnelly‚ John Lewis distribution head shows deep worry about upcoming wage rules that will affect their 85‚500 workers: the company faces hard choices as labor costs go up
We are. Weʼve got to be honest. Everybody out there is worried about the National Minimum Wage and the Real Living Wage and being able to accommodate that
Starting Apr-2025 workers will get £12.21 per hour (a 6.7% rise)‚ while younger staff aged 18-20 will receive £10 hourly; this comes with a £25bn rise in employer costs due to National Insurance changes
The retail sector faces extra pressure with these changes. Naomi Simcock‚ operations director points out that market conditions are already tough‚ while industry experts say the new rules will add £7bn in costs. More than 80 retail leaders (including big-name stores) sent a joint letter to express their concerns
Nish Kankiwala‚ the companys Partnership boss‚ calls recent budget changes a “two-handed grab“ with rising taxes and delayed business rates review. The company tries to stay competitive - they started Black-Friday deals early (back in Oct-2024) seeing 73% more online searches than last year
Peter Ruis‚ who joined as executive director this year admits the company needs to put more money into stores; hes working on making shops better while dealing with these cost issues. The company keeps matching prices with 25 other retailers to stay in the game
