John Lewis plots further store closures as Covid crisis bites

The department store chain is understood to be considering closing eight more stores as the John Lewis Partnership mulls a move to cut space and costs by moving into smaller properties.

The move, first reported by The Sunday Times, would come less than a year after John Lewis revealed plans to close eight of its shops, reducing its UK store portfolio to 42 sites.

John Lewis declined to comment. The retailer could provide an update on its property plans as soon as March 11, alongside its full-year results.

Chair Dame Sharon White is grappling to revive the fortunes of the Partnership, which also owns Waitrose, and ensure it emerges stronger from the Covid-19 pandemic. But further store closures would deliver a fresh blow to retail destinations where John Lewis serves as a major anchor tenant.

High streets, shopping centres and retail parks across the UK have already been hit hard by the demise of Debenhams and Topshop owner Arcadia in 2021.

Although both businesses were saved in some form, their acquirers, Boohoo and Asos respectively, have not taken on their store portfolios as part of the deals.

John Lewis slumped to an eye-watering £635m half-year loss after slashing the value of its stores by £470m.

The high street stalwart said at the time it was scrapping its annual bonus – the first time it has done so since 1953 – and closing eight stores, with the loss of 1,300 jobs.

Its department stores in Watford, Croydon, Newbury, Swindon, Tamworth and Birmingham, which only opened in 2015, were all shut. Smaller locations at Heathrow airport and London St Pancras station were also axed.

John Lewis delivered early signs of progress last month, however, when it raised its full-year profit forecast.

The Partnership said its sales “held up better than anticipated” during the crucial Christmas and Black Friday trading periods and said performance would come in ahead of the previous guidance of “a small loss or small profit”.