UK department store retailer John Lewis & Partners is planning to close some stores permanently, in addition to one of its London headquarters, in response to the coronavirus crisis.
In a letter to staff, chairman Sharon White is understood to have said that bonuses will also be scrapped next year, according to The Evening Standard.
John Lewis yesterday (1 July), announced a raft of further store openings as the easing of the lockdown continues, bringing the total number of shops that have reopened to 32. The retailer said there are plans for further shops to reopen later in the summer.
However, in the letter seen by the Standard, White said the group has “too much store space for the way people want to shop now”, and therefore it is highly unlikely all John Lewis stores will reopen, with “implications for some Partners’ jobs”.
The chairman said one of its London offices in Victoria will also close, home to 450 staff before lockdown. The adjacent office, home to 2,400 staff, will remain open.
In addition, White said the partnership’s 8,000 staff members across both John Lewis and Waitrose will likely have their annual bonus axed next year.
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By GlobalDataA spokesperson for the group said: “The reality is that we have too much store space for the way people want to shop now and we have shared this with our Partners. As difficult as it is, it is highly unlikely we will reopen all our John Lewis stores. However, no decision has been made and any details would be shared with Partners first by the middle of July.”
In April, John Lewis warned full-year sales could decline by as much as 35% and announced an acceleration of its strategic review to be completed by the summer.
For the 2019/20 period, the retailer recorded annual profits before its partner bonus programme, tax and exceptional items of GBP123m (US$158.9m). Gross sales were 1.5% lower year-on-year at GBP11.5bn.
A month earlier, John Lewis announced plans for a strategic review of the Partnership, due to be completed by the autumn, in order to strengthen its core retail business and develop new services outside retail. The plans are to slim down head office functions and promote closer working between Waitrose and John Lewis.
