1,500 jobs at risk as John Lewis shuts down 8 more stores
JOHN Lewis will permanently shut another eight department stores after lockdown – putting almost 1,500 jobs at risk, it announced yesterday.
The partnership, which also owns Waitrose supermarkets, has been forced to take desperate action to cut costs as shoppers move online.
The chain is fighting back after lockdowns led it to post a mammoth £517million loss – the first in its 157-year history.
Yesterday it told staff that four major department stores in Aberdeen, Peterborough, Sheffield and York will close, as well as four ‘At Home’ stores in Ashford, Basingstoke, Chester and Tunbridge Wells.
It said: ‘We can unfortunately no longer profitably sustain a large John Lewis store in some locations where we do not have enough customers,’ adding that the stores were ‘financially challenged’ even before the pandemic.
The high street stalwart closed another eight stores last year, cutting about 1,300 jobs in the first stage of a sweeping overhaul. The firm said it protected 500 of these by finding new positions.
But a further 1,500 jobs are at risk in an overhaul of its head office operations in London and Bracknell, Berkshire.
Bosses hope to keep customers affected by closures by investing in its online shop and creating hundreds of collection points for parcels.
Sharon White, chairman of the John Lewis Partnership, said: ‘Today’s announcement is incredibly sad news for our affected partners, for our customers and for the communities we’ve served over many years. The high street is going through its biggest change for a generation and we are changing with it. Customers will still be able to get the trusted service that we are known for – however and wherever they want to shop.’
The announcement is a blow to regional towns, already reeling from the closure of hundreds of Debenhams and Topshop stores. High streets rely on these big hitters to draw customers to smaller shops, bars and restaurants, and experts fear shoppers will simply stay at home and go online, leading to ‘ghost towns’.
More than 15,000 shops have closed during the pandemic, with the loss of 185,447 retail jobs. Retail expert Richard Hyman said towns with John Lewis closures ‘ will be hit enormously hard’, adding: John Lewis shops are disproportionately important in attracting business for other shops in towns.’
The remaining 34 John Lewis shops in England will reopen from April 12 subject to Government guidance. The Glasgow store will open on April 26 and the Edinburgh store will follow on May 14.
The much-loved chain has seen soaring online sales from families in lockdown but they were not sufficient to offset a collapse in store sales.
The pandemic means staff are expected to miss out on their coveted annual staff bonus for two years running – for the first time. The store is aiming to make £300million of annual cost savings.
Pippa Wicks, executive director of John Lewis, said: ‘Alongside a growing online business and the expansion of next day click and collect, we will invest in our in- store services and experiences, as well as new, smaller neighbourhood formats and the introduction of John Lewis ranges in more Waitrose shops.’
‘Towns will be hit enormously hard’