John Lewis has admitted it is “worried” about the impact of higher employment costs ahead of the national minimum wage rise next year.
The retailer’s head of distribution John Munnelly said the increase in labour costs were weighing on the business’s turnaround.
He told The Telegraph that he was concerned by the upcoming changes to National Minimum Wage as the company employs around 85,500 workers.
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“We are. We’ve 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,” Munnelly said.
The National Living Wage will rise 6.7% to £12.21 an hour in April, while the National Minimum Wage for 18 to 20-year-olds will jump 16% to £10 per hour.
His comments follow John Lewis Partnership chief executive Nish Kankiwala, who labelled Chancellor Rachel Reeves’ tax raid as a “two-handed grab” on businesses.
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