John Lewis partnership and said that any profit in the first six months of this year to close five supermarkets shops how hard it is to trade on the high street takes its toll.
The group, which employs 50 John Lewis Department store and a network of 350 stores, said full-year profit for the year until January 2019, will also be substantially lower than last year.
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LPA accused is likely to fall on the uncertainty of the market and significant costs, as he puts it, and suffers a pinch of a British exit from the EU increased sharply, inflation at a time when she was forced to cut prices due to the widespread difficulties of competitors discounting.
The group stated that it would be gradually reducing its high street presence over time, starting with the sale of four small chain of stores in the cooperative chain of supermarkets on Camden high Street, just North of London, in Aldi, which will affect about 200 employees.
The stores from hand to hand in Spinningfields and near Piccadilly station in Manchester, Colmore row in Birmingham and Portman square in Central London.
While John Lewis said he had no plans to conduct such mass closure occurs from opponents of the “Fraser house” and marks and Spencer, at least two Department stores should also be reduced in size, including Peterborough as the seller said it was looking at leasing space to retailers.
Stores to change the brand in the next five years, so that both circuits include the ‘ partners’ in the title. Photo: John Lewis
Sir Charlie Mayfield, Chairman Jean-Luc Ponty, said that the difficulties being experienced on the high street was the short: “it is very important that we feel the danger that’s happening right now. It’s not a surge, it’s a major shift and it some time.”
The network is expected to achieve revenue growth, but this will be offset by a decrease at John Lewis in the coming year. The group stated that it hoped to recover after 2019.
The group said: “it is widely acknowledged that the retail sector is going through a period of generational change and the response of each seller will be different. For partnerships, the focus is on greater differentiation, not scale”.
To emphasize that the difference in the stores don’t change your brand in the next five years, so that both circuits include “ and associates” in the title.
John Lewis is to ditch his trademark green and white and its waitrose lime and grey in favor of black-and-white livery. The changes that will begin in September, will be combined with an increased emphasis on service from the staff-owners, as a way of dealing with the competition.
Mayfield said John Lewis aims to attract more private label and exclusive brands, as well as advanced services such as personal advisers in Department stores, and Barista training or diet experts in the supermarkets.
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“We are determined to be innovators and disruptors in this market”, – he said. “This is not the time to bring the legions closer to Rome. You can’t win defensively, but [only] through the creation of novelty and innovation”.
In order to Fund the updated stores, online and its development and decline in prices from £400 million to £500 million of investment in the year, the group will reduce costs at the head office, stop investing in new shops, is reviewing its pension provision and an increase in marketing costs.
Retailers were Packed with rising costs and falling consumer confidence, with several high-profile victims this year, resulting in hundreds of closing shop. Networking, including house of Fraser, New look, carpetright and Mothercare website not closing stores, thousands of jobs at risk, resulting in higher costs and the shift to buying online.