UK department store and supermarket chain John Lewis has reported a fourth consecutive annual slump in profits.

The fall was attributed to slowing sales and investments in e-commerce and stores.

John Lewis, which runs 26 department stores and 136 Waitrose supermarkets, posted a 5% fall in yearly profits to �141m ($200m).

It invested �30m in its online retail business, which was not reflected in increased turnover because sales slowed in the wake of the 11 September attacks, partly because of a sharp drop in American tourists during a key season for retailers.

Sales in Waitrose supermarkets rose 10% in 2001.

"Despite a headline figure showing lower profit, the underlying story of 2001 is that our mainstream businesses turned the corner and reversed the three year trend of reduced profits," said John Lewis chairman Stuart Hampson.

The staff bonus of 9% of salary is the lowest for nine years.