John Lewis to shut shops after struggling first loss
John Lewis to shut shops for good after struggling first loss in 157-year historical past
John Lewis will completely shut a number of different shops after his first loss in 157 years of historical past.
The closures are the second time the partnership, which additionally owns Waitrose, has been pressured to take drastic motion to guard the corporate within the pandemic.
He’s combating again after shedding £ 517million in 2020 on account of closures and shoppers’ speedy shift to on-line purchasing.
Talking of the impact Covid has had on the enterprise, John Lewis President Dame Sharon White (pictured) stated: ‘It is a decade of change within the span of a 12 months’
Bosses have warned that the monetary outcomes will probably be even worse subsequent 12 months and that employees is not going to obtain the coveted bonus for 2 consecutive years, the primary time within the firm’s historical past.
The corporate can also be reviewing its By no means Knowingly Undersold value dedication, which has been in place since 1925, and is already slashing costs to broaden its enchantment.
It’s believed that round eight of the shops will shut, along with eight shops closed final 12 months, as a part of plans to chop annual prices by £ 300million.
The retail big has not stated precisely what number of of its 42 John Lewis shops will shut, saying a closing determination will probably be made in late March following discussions with house owners.
Such a transfer would possible lead to tons of of layoffs. It has already laid off 1,300 retailer workers and 1,500 head workplace workers.
The closure of shops may even be a blow to UK cities, already reeling from the closure of 600 Debenhams and Arcadia shops.
A complete of 20,000 shops are anticipated to shut their doorways for good this 12 months, costing 200,000 retail jobs.
President Dame Sharon White stated: ‘That is the best financial problem and public well being emergency that anybody has skilled, a real financial earthquake. It is a decade of change within the area of a 12 months. These shopping for habits have modified irreversibly. ”
The bosses stated they may open smaller John Lewis shops on the Excessive Avenue, which is able to supply a restricted vary of merchandise and a spot to choose up orders and get recommendation.
Small John Lewis purchasing areas have additionally been positioned across the nook of 5 Waitrose shops. If profitable, they are going to be deployed in “a major variety of our 331 Waitrose shops”.
However retail skilled Andrew Busby stated: “ It feels just like the enterprise is run by consultants. There did not appear to be an excessive amount of conviction on the shops. It is nearly like bosses see shops as a vital evil to their on-line enterprise, which is simply plain ridiculous.
A spokesperson for John Lewis stated he would all the time attempt to redeploy elsewhere within the firm, with layoffs being a “ final resort ”.