Marks & Spencer's store staff could see their meagre £100 bonus trimmed or ditched after the retail bellwether posts a further fall in annual profits this week.
M&S, which launched a make-or-break new fashion range last week, is also set to slash bonuses for board members, head office staff and store managers. The much smaller payout to sales assistants is entirely discretionary and could be at risk, following a sharp drop from an estimated figure of £350 to just £100 last year.
M&S, which has more than 700 UK stores and shops in 44 countries overseas, is forecast to post a 6 per cent fall in profits to £665m over the year to March. This will be its second consecutive year of shrinking profits, and it has suffered seven consecutive quarters of falling homewares and clothing sales.
The chief executive, Marc Bolland, who earned total pay of £1.7m last year, is likely to see his bonus cut again, as 60 per cent of it is based on targets related to profits.