Employee-owned department store chain John Lewis Partnership has announced plans to axe gift-wrapping and foreign exchange services, putting 200 jobs at risk.
The partnership, a plc owned by a trust on behalf of all its employees, runs 36 department stores across the UK.
It has begun a consultation on redundancies, with plans to close the desks that operate bureau de change services in 30 stores, and specialist gift wrapping in 25 stores.
No final decision has been taken on the closures, the partnership added, but if confirmed they will take place this autumn.
A spokesperson said: “As we focus on modernising this proposition to meet our customers’ changing needs, we’re proposing to close our in-store foreign exchange bureaus as well as our gift wrapping service.
“As a result, we’re regretfully consulting with partners who currently deliver these services.”
The GMB union warns that workers are ‘terrified’ over the plans, and has called an urgent meeting with management to demand they do everything possible to avoid compulsory redundancies.
“Today’s announcement will come as a devastating blow to workers and their families,” said GMB national officer Rachelle Wilkins. “Staff will now be terrified about what the future holds.
“These employees have shown commitment and professionalism through years of change across the retail sector – they should not be expected to shoulder the cost of corporate restructuring.
“GMB has called an urgent meeting with JLP management, where we will demand the company explore every possible alternative to compulsory redundancy.”
The news follows an announcement last month that John Lewis is investing £50m this year across five stores as part of a long-term programme to transform and elevate of its stores.
Stores in Glasgow, Cambridge, Leicester, Reading, and Liverpool will be covered by the latest phase of investment. Glasgow will receive more than £20m in a full redevelopment – the largest single-store investment made by the brand in recent years.
The partnership says the refurbishments “will bring new brands, elevated products and experiences, and an environment that meets customers’ wants and needs”.
In March, the business reported a pre-tax loss of £21m, thanks to £120m worth of one-off costs which mainly related to write-downs in the value of old tech systems.
But underlying profits rose 6% to £134m, with sales across the business rising 5% to £13.4bn.
Sales growth was higher at the partnerships’ grocery arm Waitrose, growing 7% to £8.5bn in the year to the end of January compared to a 3% increase to £4.9bn at the department stores.
Workers received a 2% bonus, equivalent to an extra week’s pay – their first since 2022, after the retailer emerges from a troubled period marked by the departure in 2023 of chair Sharon White.
