Hopes are rising that the John Lewis Partnership (JLP) will open a department store in Brighton after the group posted record profits.

JLP, which includes supermarket chain Waitrose, has announced major expansion plans for 2007/8 following a ten per cent profit rise last year.

Sales in the partnership's stores broke the £5 billion barrier for the first time, establishing it as one of the UK's top ten retail groups.

Managing director Luke Mayhew said he was looking for additional sites, having already established locations in Cardiff and Leicester.

Leeds, Harrogate, Croydon and the West Midlands have been identified as preferred locations for the new stores.

But there is speculation Brighton may be added to the list.

The idea has always been linked to the redevelopment of the Brighton Centre which will close in three years.

A John Lewis store in Brighton would provide fierce competition for Debenhams, the only other major department store in the city centre.

A Brighton and Hove City Council spokesman said: "We're always interested in talking to potential partners from the private sector who might get involved in large regeneration schemes".

Tony Mernagh, chairman of the Brighton City Centre Business Forum, said a John Lewis store would make up for an area of retail in Brighton which was sorely lacking.

Meanwhile, JLP's bumper profits mean its staff will receive an annual bonus equal to six weeks pay.

The staff's 12 per cent payout, totalling £87million, is the best since 2000 but still substantially less than the 22 per cent they received in 1998.

The group's Waitrose chain reported sales up 12 per cent to £2.7 billion and like-for-like sales, which exclude the impact of new outlets and extra space, ahead an impressive five per cent.

Department store sales were ahead four per cent at £2.4 billion.

The group will also bid for a number of supermarkets that become available after the Morrison/Safeway merger.