Job Cuts Proposed as John Lewis Plans Service Closures
Approximately 200 employees at John Lewis may face redundancy as the retailer considers closing its in-store money exchange services and dedicated gift wrapping areas. While no final decision has been reached, the proposed job cuts are expected to take place in the autumn if the current consultation on redundancies is approved.
John Lewis attributed the decision to close its in-store bureaux de change to declining demand. Additionally, the retailer plans to relocate gift-wrapping services from specialised areas to its tills.
A spokesperson for John Lewis stated,
"As we focus on modernising this proposition to meet our customers' changing needs, we're proposing to close our in-store foreign exchange bureaus as well as our gift wrapping service. As a result, we're regretfully consulting with partners who currently deliver these services."
The spokesperson further added that the company would provide support to affected staff throughout the consultation process and assist with redeployment where possible.
Changing Customer Preferences and Service Adjustments
The retailer noted that customers are increasingly ordering foreign currency online and opting to collect it in-store. Furthermore, some customers are choosing to use credit cards or digital payment methods while travelling abroad instead of exchanging cash.
Regarding gift wrapping, John Lewis indicated that the planned changes would make the service more accessible by moving it to the tills rather than maintaining a specialised area.
The closure of the money exchange service will impact 30 John Lewis shops, while the gift wrapping service closure will affect 25 shops.
Recent Changes and Financial Performance
John Lewis has been undergoing significant changes under the leadership of its chair, Jason Tarry, who assumed the role in 2024. This followed a challenging period during which the retailer implemented job cuts and closed multiple stores.
In February, John Lewis closed its housebuilding division, a move that also resulted in job losses. Subsequently, in March, the retailer announced it would award its staff a bonus for the first time in four years, reflecting improvements in profits and sales. The bonus had been suspended during the Covid-19 pandemic, marking the first such suspension since 1953.
John Lewis's latest financial results revealed a pre-tax loss of £21 million, primarily due to £120 million in one-off costs related mainly to write-downs of outdated technology systems. Despite this, underlying profits increased by 6% to £134 million, and overall sales rose by 5% to £13.4 billion.
Sales growth was stronger at Waitrose compared to John Lewis. Supermarket sales increased by 7% to £8.5 billion in the year ending January, while department store sales grew by 3% to £4.9 billion.
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