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The John Lewis Partnership has revealed that it does not expect to reopen all of its department stores as coronavirus lockdowns are eased.
The company, which also includes the Waitrose supermarket chain in its stable, announced last year that it would not pay a cousin to its staff, known as partners, for the first time since 1953 and eliminated 1,300 jobs amid COVID-19 restrictions in stores.
He said then that eight stores were closing, including the Birmingham, Watford and Newbury sites, and the Sunday Times has since reported that eight more are at risk.
Dame Sharon White warned that more John Lewis stores will remain closed
Such a scenario, if realized, would leave only 34 surviving John Lewis stores.
But the employee-owned company was unable to put a number on it Thursday, saying it was still locked in negotiations with the owners.
It reported group pre-tax losses of 517 million pounds for the year to January 30 compared to earnings of 146 million pounds for 2019.
John Lewis blamed “substantial” one-off costs of £ 648 million, which he said reflected a decline in the value of John Lewis stores “due to the sharp shift to the Internet” during the crisis.
He also noted broader restructuring and firing costs.
Partnership targets online sales growth for both Waitrose and John Lewis
The company said earnings before the one-off items of £ 131 million would not have been achieved without £ 190 million of financial support from the government, which covers trade fee relief and licensing.
Online sales at John Lewis increased 73% for the year to help limit the impact of closed stores.
Waitrose increased commercial operating profit to £ 1.1bn as it benefited, like supermarket rivals, from its essential retailer status.
Any subsequent closure of the John Lewis stores would inevitably lead to further job losses.
Association President Dame Sharon White said: “You cannot escape the fact that some areas can no longer profitably support a John Lewis store.
“Unfortunately, we do not expect to reopen all of our John Lewis stores by the end of the closure, which will also have implications for our supply chain.
“We are currently in discussions with the owners and final decisions are expected by the end of March.
“We will do everything possible to lessen the impact and we will continue to provide community funds to support local areas.”
