Waitrose to close five branches as John Lewis profits slump
The John Lewis Partnership warned that profits in the first half of the year will be "close to zero"
WAITROSE is shutting down five of its stores in the latest blow to Britain's retail sector.
Owners John Lewis Partnership unveiled plans to close four Waitrose convenience shops and one small supermarket, as it issued a profit warning.
It will shut its supermarket based in Camden in London - the largest of the five at just under 10,000 sq ft.
Affected shops also include two of the Little Waitrose in Manchester, one in Birmingham and another one near Baker Street in London.
A spokesperson for Waitrose confirmed that the five stores set to close have sold to other retailers.
Co-op will take over the little convenience shops. While Aldi accepted to buy the largest supermarket in London. The sales of the shops are expected to complete in the autumn.
Waitrose UK store closures
AFFECTED stores include two stores in London and two in Manchester
Waitrose has agreed to sell the following four little Waitrose shops to the Co-op:
- Spinningfields, Manchester (3,100 sq ft - opened November 2010)
- Manchester Piccadilly (3,000 sq ft - opened October 2014)
- Colemore Row, Birmingham (3,000 sq ft - opened March 2012)
- Portman Square, Baker Street,London (2,800 sq ft - opened October 2014)
Waitrose has agreed to sell the following Waitrose shop to Aldi:
- Camden, London (9,600 sq ft core - opened May 2014)
Staff working in the stores being bought by Co-op will transfer to the supermarket under the Transfer of Undertakings, Protection of Employment regulations.
But Aldi does not plan to open in Camden for at least six months to undertake work to the unit, which means the shop will close, putting 68 jobs at risk.
Ben Stimson, Waitrose retail director, 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.
TROUBLE ON THE HIGH STREET
“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.”
It comes as the John Lewis Partnership issued a profit warning.
The group warned that profits in the first half of the year will be "close to zero", while profits for the full year will come in "substantially" lower than last year.
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The company is also rebranding, to emphasise the partnership element of its business.
From September, the two retailers will be called John Lewis & Partners and Waitrose & Partners. The business is yet to announce how the change will be introduced.
It's the latest blow to the high street as retailers struggle with rising business rates, competition from online rivals and a slowdown in consumer spending.
Last week, House of Fraser was given the go ahead from creditors to axe more than half of its stores, resulting in up to 6,000 job losses.
It follows similar moves taken by New Look and Carpetright, which are expected to close 60 and 92 stores respectively, putting hundreds of jobs at risk.
In March, fashion retailer Next also revealed it will axe 60 of its shops putting 980 jobs at risk.
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