John Lewis launches consultation on cuts
UK department store operator faces clash of catchments
May 3 2003
John Lewis Partnership has started a cost cutting exercise that could affect 380 employees, both in support functions as well as at two of its department stores.
The business, whose 60,000 partners share in its running and profits, is consulting staff at two stores – Caleys in Windsor, Berkshire and Knight & Lee in Southsea, Hampshire. Consultations are also being carried out in the financial accounts and maintenance departments, where John Lewis believes it could make operational efficiencies.
Potentially, job losses could affect up to 340 support staff across the two function and 40 at the stores, although the company said it would aim to relocate employees if possible.
Ironically, Caleys and Knight & Lee have seen trading affected by the opening of new John Lewis stores in Reading and Southampton. John Lewis department stores typically have much wider catchments than most UK retailers, with the new stores attracting customers who would previously have travelled to the existing stores.
In the week to April 26 John Lewis sales were down 4.6 per cent in the department stores, and by 9.2 per cent in the Waitrose supermarket business. The company said comparisons with last year were unreliable because of some store closures this year over Easter.
