What: John Lewis Partnership is presenting a comprehensive plan, including many various proposals put together: retail, non-retail, e-commerce.

Why is it important: In spite of an ambitious plan to reach 60 to 70% of the business online, JLP did not present a plan including a massive restructuring of its retail network, which baffles specialists. In spite of closing down 8 units, there will be still 46 stores to cater to and make profits as well. We believe at IADS that some department stores will need to learn downsizing their retail network, in order to sell less but earn more money at the end of the day.

UK retail group John Lewis is planning to triple its previous saving plan until 2022, to €330m annually, in order to fund a €1.1bn investment plan split between e-commerce and stores, aiming at increasing profit from  €160m last year to €440m in 2025. In parallel, there is a plan to develop non-retail activities (housing, horticulture…), with a target of reaching 2/5 of total turnover within 2030. Observers are noting that the plan, ambitious on the e-commerce section (target: 60 to 70% of the total retail business) does not include a massive restructuring of the stores’ network, which raises questions. To date, only 8 stores are to be closed, with the layoff of 1,400 associates (out of 80,000).

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