RETAIL giant John Lewis Partnership has confirmed that several Waitrose stores will close - not including any in Gwent - following a plunge in profits.

The group said it is cutting its staff bonus for the seventh year running, to two per cent of annual salary, after seeing underlying pre-tax profits tumble to £123 million for the year to January 25.

Dame Sharon White - who took the helm as chairwoman at the group behind John Lewis department stores and Waitrose supermarkets last month - outlined a plan to return the group to profit growth, including "right sizing" its store estate and slimming down its head office.

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She also hinted that the retailer's long-time slogan "Never Knowingly Undersold" price match could be "modernising" as it struggles to compete on price with online giants and discount events at rivals.

The new chief said: "We've had fair value as part of our proposition for almost 100 years and fair value will continue to be part of our proposition going forward, whether that's in a more modernised form or not."

Which stores will close?

Three Waitrose stores will close later this year, they are:

- Helensburgh in Scotland

- Four Oaks in the West Midlands

- Waterlooville near Portsmouth

Dame Sharon added: "We need to reverse our profit decline and return to growth so that we can invest more in our customers and in our partners.

"This will require a transformation in how we operate as a partnership and could take three to five years to show results.

"We are stepping into a vital new phase for the partnership and I have no doubt we will come through it stronger."

Dame Sharon - the former chief of communications watchdog Ofcom - said staff affected by store closures who wish to stay with the group will be "actively supported" to do so.

But there was some cheer as she unveiled plans to invest in Waitrose online, ahead of its tie-up with Ocado ending in September, with plans to hire 2,400 new staff and build a new fulfilment centre in Enfield, north London.

Her strategic review will be completed by the autumn and she will update further on actions at half-year results, but she stressed that the group would remain employee-owned and would keep its two brands, John Lewis and Waitrose.

She said: "These are the most challenging but exciting times in retail for a generation."

Results show the third consecutive year of falling annual profits, which came after like-for-like sales dropped 2.7 per cent across John Lewis department stores and slipped 0.2 per cent at Waitrose.

This pushed the John Lewis chain to a £37 million statutory loss, against earnings of £92.6 million the previous year, while Waitrose put in a more robust performance with a 6.4 per cent rise in earnings to £211.9 million.