What: Closing 8 stores might not be enough to sustain the profitability levels required to keep on investing

Why it is important: John Lewis plans to keep on massively investing in e-commerce and new retail categories, in an effort to be “where the customers are”, which implies keeping an eye on the retail network as well.

John Lewis, in a similar effort to IADS member SM, is looking at “rightsizing” not its stores as it is the case with SM, but its retail network, and could consider closing additional stores (on top of the 8 units already closed) with a decision to be taken end of March 21.

The perspective on the long range is to have large destination stores, with space dedicated to experience, complemented by smaller format local shops, and a backbone represented by e-commerce, where the retailer plans to keep on heavily investing. This implies that stores where “customers aren’t” will not be kept at all costs, all the more that John Lewis is, in parallel, entering new markets such as social housing and outdoor living.

Given the situation and the level of investments needed to sustain such a transition, bonuses will not be paid to the company’s staff in 2021, for the second year in a row.

John Lewis warns of further store closures