Waitrose free coffee will have a trial return in some stores

A return of Waitrose's popular free coffee for loyalty card members will be trialled in some stores.

The free hot drink for members of the myWaitrose scheme was scrapped at the start of the coronavirus pandemic.

But boss Dame Sharon White told the BBC's Amol Rajan she was looking at potential ways to bring it back.

It comes as John Lewis restored its annual staff bonus after sales bounced back in 2021, but it warned customers would see higher prices this year.

Dame Sharon told the Amol Rajan Interviews: "Coffee we're actually looking at because one of the things we haven't been able to do with Covid is actually is to have the coffee offer.

"So we're going to be experimenting in a few stores how we do that safely."

The free beverages were originally collected by customers using self-service machines and disposable cups. But in 2018 Waitrose asked customers to bring their own reusable cups.

Dame Sharon, chairman of the John Lewis Partnership, said a previous offer of a free newspaper had ended. But it would be replaced with personalised offers such as a voucher or access to new products, she said.

John Lewis scrapped staff bonuses last year for the first time since 1953 after seeing heavy losses in the pandemic.

But they're back after John Lewis sales hit a record £4.9bn and Waitrose revenues rose 1% to £7.5bn.

The retailer will now give its around 80,000 staff a bonus of 3% this year, equivalent to one-and-a-half weeks' pay, and increase wages by 2%. This is on top of a pledge to pay the real living wage.

Dame Sharon said the Ukraine conflict and rising inflation meant passing some price rises on to customers was unavoidable.

She told the PA news agency: "As far as we can, we're trying to absorb the cost pressures... not all of these pressures are absorbable.

"The cost of living pressures are real - real for our partners and customers and we're doing everything we can in our power to try to limit the impact."

Meanwhile, rival Marks & Spencer has announced its chief executive will step down after six years in the role.

Steve Rowe, who joined M&S aged 15, will leave his full time job on 5 July but has agreed to stay on as an adviser to the new leadership for up to 12 months.

A statement from the company credited Mr Rowe with reviving M&S food and doubling clothing and home online sales.

Company chairman Archie Norman said Mr Rowe had lived and breathed M&S and put his heart and soul into the job.

"He will be much missed and goes with our huge affection and best wishes," he said.

Mr Rowe said: "A piece of my heart will always remain with the M&S family... I'm proud that I am leaving a very strong team who will lead it into the next growth phase. I wish them every success."

John Lewis executive director Pippa Wicks said price rises at department stores had so far been "small" and only affected certain products, but did not specify which.

James Bailey, executive director at Waitrose, said it had also put up some prices as food inflation ran at 3-4% across the UK.

Even before the war in Ukraine, the cost of living in the UK was rising at its fastest rate in 30 years as fuel and energy bills soared.

But the conflict is worsening inflation, prompting warnings the UK faces its biggest income squeeze in nearly 50 years.

John Lewis said sales at its department stores had climbed 8% in the 12 months to 29 January, and its losses shrank to £26m from £517m in the previous year, when lockdown closures rocked its business.

Dame Sharon said the group had made a "good start" to a tough five-year restructuring plan but warned it was "only one year through".

Even before the pandemic the retailer had been hit hard by the shift to online shopping, and last year announced store closures and almost 2,500 job cuts.

Since then, the group has been trying to bolster it business by investing more in John Lewis shops and online shopping, and cutting costs elsewhere.

"Looking ahead, we see continued uncertainty from global events, affecting the economic environment, our customers, partners and society. As inflation and energy prices rise, our customers face higher living costs.

"While this creates uncertainties as we look ahead, we remain focused on investing significantly in our Partnership Plan to transform and grow our business."

The group, which also owns the Waitrose supermarket chain, recently said it would ditch its "Never Knowingly Undersold" promise to customers, which began in 1925.

The pledge means the retailer matches prices on branded products with national retailers, but not online-only sales. However, John Lewis said it was becoming less relevant as shopping moved increasingly online.

The group has also said it will remove any products made in Russia from Waitrose and John Lewis in response to the conflict in Ukraine.

Amol Rajan's full interview with Dame Sharon White will be broadcast on BBC Two at 21:00 GMT on Thursday, 17 March, and viewable in the BBC iPlayer