John Lewis has revealed plans to permanently close eight of its stores while preparing to reopen its remaining 34 locations on April 12. The decision to close these stores was primarily driven by their inability to sustain large retail spaces. Nevertheless, John Lewis intends to expand its presence in the UK and create more shopping opportunities for customers.
The eight stores set to close include four ‘At Home’ locations in Ashford, Basingstoke, Chester, and Tunbridge Wells, as well as four full department stores in Aberdeen, Peterborough, Sheffield, and York. Unfortunately, this closure will affect approximately 1,465 employees, and the company is now engaging in consultations with them. John Lewis is committed to making every effort to find alternative roles within the company for as many affected staff members as possible. In a previous round of store closures, around a third of affected staff were able to secure permanent positions elsewhere within the company.
This decision to close stores is part of John Lewis’ efforts to realign its store portfolio in response to evolving customer shopping habits. The department store chain has witnessed a rapid shift towards online channels, a trend that has been further accelerated by the pandemic. Online sales for John Lewis have grown from 40% to between 60% and 70% of total sales. Even with the reopening of physical stores, the company expects this trend to continue.
John Lewis has conducted extensive research to understand and cater to new customer shopping habits across different regions of the country. Unfortunately, the eight stores identified for closure were facing financial challenges even before the pandemic, and the company does not anticipate a change in their profitability post-pandemic.
However, the remaining department stores are considered vital to the future success of John Lewis. These locations offer a sensory experience that cannot be replicated online, supported by the expertise of the company’s staff. By consolidating its store presence, John Lewis will be able to invest significantly in enhancing the remaining locations and providing more immersive shopping experiences tailored to the preferences and interests of local customers.
In response to customers’ desire for convenience, John Lewis plans to enhance its next-day Click & Collect service in Waitrose stores and introduce more local collection points through partnerships with third-party providers. The company is also testing the introduction of John Lewis shopping areas within Waitrose stores. Furthermore, in the autumn, Waitrose general merchandise products will be sourced by John Lewis.
Additionally, John Lewis will explore new formats, including smaller neighborhood shops, that offer a carefully curated selection of its products. The company is committed to supporting staff who are unable to find new positions within the business by providing guidance and financial assistance for retraining. It will also establish a £1 million Community Investment Fund to support local projects in the eight areas affected by the store closures.
Sharon White, Chair of John Lewis, acknowledges that the announcement is distressing news for the affected staff, customers, and communities. She recognizes that the high street is undergoing significant changes, and John Lewis is adapting to meet the evolving needs of its customers. The company remains steadfast in delivering its trusted service and ensuring that customers can shop however and wherever they prefer.
Links:
1. [John Lewis website](https://www.johnlewis.com/)
2. [Waitrose website](https://www.waitrose.com/)
