image copyrightGetty Images
Retail giant John Lewis has warned of further store closures as it reported huge losses due to Covid-related lockdowns that forced shops to shut.
The group swung to a loss of £517m for the year to January, against profits of £146m the previous year
The retailer said it “does not expect” all of its department stores to reopen once lockdown restrictions ease.
It has previously been reported the chain was considering closing up to eight more stores to try to cut costs.
Any further closures would be in addition to eight already announced in 2020.
It did not say how many of its 42 John Lewis shops were under threat, but said it was in talks with landlords and would make a final decision at the end of March.
The rise in internet shopping, accelerated by various lockdown measures amid the coronavirus pandemic, has forced John Lewis to rethink how many stores it needs.
Chairman Sharon White said: “There is no getting away from the fact that some areas can no longer profitably sustain a John Lewis store.
“Regrettably, we do not expect to reopen all our John Lewis shops at the end of lockdown, which will also have implications for our supply chain.
“We will do everything we can to lessen the impact and will continue to provide community funds to support local areas.
“We want to ensure our stores reflect how customers want to shop – ‘right space, right place’.”
John Lewis’ hefty annual loss was mainly due to the write down in the value of its stores because of the shift to online shopping, as well as restructuring and redundancy costs.
The partnership, which also runs Waitrose supermarkets, is now targeting savings of £300m a year by 2022.
In addition to closing some John Lewis stores, the group is trialling running dedicated John Lewis shopping areas in some Waitrose supermarkets.
The group announced last July it was closing John Lewis stores in Birmingham, Croydon, Watford, Newbury, Swindon and Tamworth, as well as the smaller hubs at St Pancras and Heathrow, with the loss of 1,300 jobs.
In September, John Lewis also announced it was scrapping its staff bonus for the first time since 1953 in September.
Are you a John Lewis employee? Share your experiences by emailing firstname.lastname@example.org.
Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways:
If you are reading this page and can’t see the form you will need to visit the mobile version of the BBC website to submit your question or comment or you can email us at HaveYourSay@bbc.co.uk. Please include your name, age and location with any submission.
The department store giant says it does not expect to reopen all of its shops post-lockdown.
image copyrightGetty Images