In a significant move that could impact approximately 200 employees, John Lewis has announced plans to potentially shut down its in-store currency exchange services and dedicated gift-wrapping areas. The retailer is currently undergoing consultations regarding these changes, with job reductions expected to be implemented by autumn if the proposals receive approval.
Shift in Consumer Preferences
The decision to close the in-store bureaux de change has been attributed to a notable decline in demand. John Lewis has observed a trend where customers are increasingly opting to purchase foreign currency online and pick it up in-store. Furthermore, many are favouring credit cards or digital payment options while travelling abroad.
A representative 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 bureaux as well as our gift-wrapping service.” The spokesperson assured that the company would provide support to affected employees throughout the consultation process and explore redeployment opportunities where feasible.
The proposed closure of money exchange services will impact 30 locations, while the gift-wrapping service changes will affect 25 stores.
Recent Changes Under Leadership
These developments come during a period of transformation for John Lewis, especially under the leadership of Jason Tarry, who took over in 2024. His tenure has been marked by efforts to adapt the retailer’s offerings to align with evolving market demands. Earlier this year, John Lewis ceased operations in its housebuilding division, which also led to job losses.
Interestingly, in a sign of recovery, John Lewis announced it would award bonuses to staff for the first time in four years, following a challenging period exacerbated by the Covid-19 pandemic. The bonus had not been distributed since 1953, highlighting the magnitude of the recent changes.
Financial Performance Insights
Despite reporting a pre-tax loss of £21 million, largely due to one-off costs amounting to £120 million linked to the depreciation of outdated technology systems, John Lewis did achieve a 6% rise in underlying profits, totalling £134 million. Additionally, overall sales increased by 5% to £13.4 billion. Notably, Waitrose, the supermarket division of the group, experienced a more significant sales growth of 7%, reaching £8.5 billion for the year ending January, compared to a 3% increase to £4.9 billion at its department stores.
Why it Matters
The restructuring of services at John Lewis underlines the ongoing challenges faced by traditional retailers as they navigate shifting consumer behaviours and preferences. As the company seeks to modernise and streamline its operations, the potential job losses highlight the broader employment implications within the retail sector. The outcome of these consultations may not only affect the livelihoods of hundreds of employees but could also signal a pivotal moment in John Lewis’ efforts to redefine its market position in an increasingly digital landscape.
