John Lewis recorded a loss of £517m in the year ending January
British retail giant John Lewis has warned of further store closures after posting a pandemic-related loss due to store closures across the country.
John Lewis posted a loss of £517m in the year ending January, compared with a profit of £146m the year before.
Previous reports said up to eight stores could be closed to cut costs. Additional store closures will be added to this number.
The company declined to say how many stores would be affected, but confirmed that a decision would be made by the end of March.
Chairman Sharon White told the BBC that the store closures were “painful” but necessary given “a decade of changes in shopping habits in one year”.
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“There is no getting away from the fact that in some areas John Lewis stores are no longer profitable to sustain. Unfortunately, there are no plans for all John Lewis stores to reopen after lockdown ends, and supply There will also be an impact on the chain,” White added.
Danny Hewson, financial analyst at AJ Bell, commented on the store closures:
“For more than a decade we have been asking the question, ‘What does the future hold for the high street?’ Ever since Woolworths closed in 2015, there have been whispers of concern and calls for change.” said Hewson.
“John Lewis’ decision not to reopen some stores after lockdown ends is not surprising. Six years ago, when I went to the opening of the long-awaited John Lewis store in Leeds, the partners were hush-hush. It repeatedly told me how this is the store of the future. It’s about the experience. It also offers advice on restaurants, treatment rooms, and quality sleep. Dot com It was also an integral part of the service.”
