Staff at Waitrose and parent company John Lewis are braced for a major cut in their annual bonuses when the retail group announces its full-year results this week.

Around 70,000 staff will be affected by the expected cut, which could see bonuses reduced from the equivalent of 20% of annual salary last year to 12%.

John Lewis unveils its end-of-year results on Wednesday, with analysts warning that a drop in profit of up to 30% could be around the corner.

Although Waitrose was recently crowned the UK’s favourite supermarket in a poll by BBC consumer show Watchdog, the supermarket is currently battling to retain shoppers during the economic slump.

This week the supermarket will begin rolling out its ‘Waitrose essentials’ range of 1,400 cut-price grocery items designed to keep middle-class shoppers looking to reduce their weekly food bill. The first products will be in the fresh produce aisles.