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The state of the UK high street sees John Lewis, Harrods and Arcadia battle store closures and job losses

By Don-Alvin Adegeest

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Retail

As June’s sales data across the retail sector slowly trickles in, companies like Harrods, John Lewis and Arcadia are confirming layoffs, store closures and other measures to cope with the impact of Covid-19.

John Lewis, a stalwart of the British high street, said it is unlikely that all 50 of its stores will reopen. In a letter to its staff, chairman Sharon White also said the retailer’s staff bonus may not be paid next year. “Regrettably, it is likely that there will be implications for some partners’ jobs. We are in active discussions with landlords about ending some leases and renegotiating others to make the terms more flexible.”

Harrods on Wednesday said it would shed 700 jobs as it cuts its workforce by 14 percent. By comparison, Arcadia is cutting 25 percent of its head office roles, which sees 500 of its 2500 functions across its brand portfolio affected as it carries out a restructuring of its head office.

Clothing chain TM Lewin currently has 650 of 700 staff on the government furlough scheme, but the company is shutting its entire chain as it struggles to pay rent and other costs. Its stores remain closed since lockdown was implemented in late March. 600 jobs have so far been lost.

In May, Marks & Spencer announced a 1 billion pound coping plan to counter the impact of a 37 percent drop in profits for the year to 28 March amid the coronavirus crisis.

In the same month Burberry reported a 62 percent drop in full-year profits to 169 million pounds as a result of Covid-19, and warned it could “take some time” before the luxury fashion industry recovers to pre-crisis levels.

Despite the easing of social distancing and reopening of non-essential retailers, stores ranging from small boutiques to country-wide department store groups are threatened with shop closures and job losses as consumer spending remains low and costs and inventory high.

Photo credit: Harrods by DAVID ILIFF, license: CC-BY-SA 3.0, source Wikipedia

Arcadia
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Coronavirus
Harrods
John Lewis