Department store giant John Lewis is in talks with landlords over potential store closures, it has been reported.
The Newcastle John Lewis store finally reopened last week after closing three months ago when lockdown arrived – yet the store’s future could now be in doubt after it was reported that new chairman Sharon White has told staff that some shops will close.
According to the Evening Standard, Mrs White has penned a letter to staff of the partnership, which includes Waitrose, outlining a major cost-cutting drive and that its covered annual bonus is also likely to come to an end next year.
At the start of the Covid-19 pandemic, sources said it was unlikely that all 50 of its department stores would reopen after the lockdown.
Around 20 stores have reopened since non-essential retailers were given the green light to reopen two weeks ago, with distancing measures in place, and more reopenings have been announced today.
In the letter seen by the paper, Mrs White is reported to say: “The difficult reality is that we have too much store space for the way people want to shop now. As difficult as it is, we now know that it is highly unlikely that we will reopen all our John Lewis stores.
“Regrettably, it is likely that there will implications for some Partners’ jobs. We are in active discussions with landlords about ending some leases and renegotiating others to make the terms more flexible.”
A spokeswoman for John Lewis also said that the firm is in discussions with shopping centre owner Intu, which fell into administration last week, to see how the process would affects its stores within Intu centres, including in Newcastle.
The spokeswoman said: “Following the announcement that Intu has entered into administration, we are working closely with them and the administrators to understand the implications for the small number of shops we have within their shopping centres.
“We have received assurances from the administrators that these centres will remain open while a buyer is found but are unable to say more at this stage.”
Talks of potential store closures comes as the retail giant unveiled reopening plans for another 10 stores, including its first in Wales and Scotland, as well as the chain’s flagship shop in Oxford Street.
The group said shops in Basingstoke, Cardiff, Chelmsford, Chester, Edinburgh, Exeter, Glasgow, Stratford and the Trafford Centre will reopen on Monday, July 13.
Its Oxford Street department store will open later in the week, on July 16, as John Lewis said the size of the shop meant it needed extra time to finalise plans.
The latest raft of reopenings will take the total for the group so far to 32 since lockdown restrictions have eased for non-essential shops, with 18 remaining closed.
Berangere Michel, executive director for customer service at the John Lewis Partnership, added: “We are learning as we go and tweaking our approach to give our customers and partners the best possible experience.
“Feedback from customers is that they really enjoy being able to test and try out products such as tablets, mattresses and shoes, all in a safe environment, as well as asking our expert partners for advice.”
