John Lewis has recently announced its decision to permanently shut down eight of its department stores as part of its strategy to further enhance its online retail presence in response to shifting consumer behavior. Among the closures are two major department stores in Birmingham and Watford, along with several smaller locations including travel-oriented shops in Heathrow and St Pancras, as well as At Home stores in Croydon, Newbury, Swindon, and Tamworth. This move comes as the retailer contends with the impact of the COVID-19 pandemic, which has expedited the trend towards online shopping over traditional brick-and-mortar stores.
Prior to the global health crisis, 40% of John Lewis’ sales were generated through online channels. However, the company anticipates this figure to surge to as high as 60-70% in the current year and the next. In response, John Lewis is poised to make significant investments in its e-commerce infrastructure to align with this evolution, while reaffirming the importance of physical stores in catering to customer demands. The specifics of the retailer’s store strategy moving forward will be disclosed in an upcoming strategic review.
In the event that layoffs become necessary, John Lewis has pledged to assist impacted employees in securing alternative roles within the organization, such as transitioning to positions in Waitrose stores or web-based operations. The establishment of a Retraining Fund has also been put in place to aid employees in acquiring new skills or certifications. Despite the store closures, Board Chair Sharon White expresses confidence in the future outlook of the John Lewis Partnership, underscoring the company’s adaptability to evolving customer preferences and the enduring prestige of its Waitrose and John Lewis brands.
For more information on John Lewis’ latest developments, please visit their official website here. Additionally, you can explore the company’s press releases and updates by clicking this link.
