The company is now warning of further store closures as the Coronavirus continues to batter the retail industry.
John Lewis’s trading update for the year ended January 30 showed a £517M loss before tax, compared to profits of £146M the previous year. The partnership’s balance sheet shows John Lewis shops are now at almost half the value they were before this year and last year’s write downs.
However, John Lewis recorded a full-year profit of £131M, an increase from last year’s £70M profit, although this figure would have been a loss if the company had not taken advantage of the £190M in government support through the furlough scheme. The Partnership’s overall sales declined from £1.79bn to £1.69bn.
John Lewis Partnership Chair, Dame Sharon White, commented: “All our John Lewis stores need to be exciting places to shop, more reflective of the tastes and interests of local customers. This will require investment and we are working closely with landlords and local authorities. We are keen to play our part in the revitalisation of the high street. Hard as it is, there is no getting away from the fact that some areas can no longer profitable sustain a John Lewis store.”
Although John Lewis has not yet specified how many of its current 42 stores are at risk, the company has confirmed that a final decision will be made by the end of March, following discussions with landlords.
