John Lewis to close multiple Waitrose stores as profits dip

John Lewis is set to close five Waitrose stores, including two in London. The London closures include a Camden supermarket and a Little Waitrose in Portman Square. Elsewhere, the retailer is closing two Little Waitrose outlets in Manchester and one in Birmingham. Waitrose has accepted an offer from Aldi for the Camden supermarket – the largest of the five at 10,000 sq ft – as well as an offer from the Co-op for the other four stores. The sale of the shops is expected to complete in the autumn. Waitrose retail director, Ben Stimson, said: “The sale of these shops is not something we take lightly, but we have accepted offers for them as it is sadly – despite the best efforts of everyone involved – not commercially viable for us to continue trading from them in the long term. “Our priority is the wellbeing of our partners working in those shops who will be fully supported throughout the process and we will identify opportunities for those wishing to remain with the business wherever possible.” The news comes as the John Lewis Partnership said in a statement this morning that it expects half year profits to be “close to zero” and full year profits to be “substantially lower” than the previous financial year. The statement continued: “As we develop our plans to prioritise differentiation we will continue to make adjustments to our overall estate, including exit or closures, but at a rate that’s in line with what we have seen over the last few years. To this end, Waitrose today announced the disposal of four convenience shops and one small supermarket.” The retail sector has been hit by a wave of store closures and job losses as the high street struggles to compete against internet shopping. On 7 June, House of Fraser announced a plan to avoid a collapse involving the closure of 31 of its 59 department stores including its Oxford Street branch in London. Other retailers and restaurant groups to unveil closures this year include Mothercare, Carpetright, New Look, Prezzo and Jamie’s Italian. Unlike many of its competitors, the John Lewis Partnership has a well balanced and well-located portfolio, with 353 Waitrose shops and 50 John Lewis stores.