JLP in Trouble

John Lewis Partnership (JLP) is seeking discounts from its landlords to cut costs, in a highly unusual move that highlights the huge pressures on retailers. The BBC has learned that the retail giant has been telling landlords in some locations that it will withhold 20% of this quarter's service charge. These are the fees retailers pay on top of rent for services such as heating and security.

John Lewis said the charges had become too high and urged landlords to help.
But the move could lead to legal action by property owners to recover any unpaid money.

John Lewis Partnership announced a major restructuring of its management teams earlier this week in a bid to cut £100m a year from its costs. From next year its supermarkets and department store divisions will be run as one business. A third of senior management jobs will be axed at the John Lewis Partnership as the company streamlines its structure from February next year.

The partnership is merging the managements of its High Street department stores and Waitrose grocery chain into a single team. John Lewis has been struggling in a tough retail climate. The restructuring aims to save £100m, through the loss of about 75 of its current 225 senior head office roles.

Coupled with running a large farming estate, a country club, holiday homes and boats the partnership is in serious trouble. Partners bonuses are likely to be 0% next year & some 8 years ago it was at an all time high of 25%.

Good for the customers only.
 

ugly

LE
Moderator
If knowingly never understood has issues with its overheads this is serious. They do however have the clout to up sticks and move should they want to. This should be a warning to developers and landlords. The high street is dead again, it went through this in the 60's with supermarkets, 70's with superstores and the 80's with out of town shopping. The last 20 years has seen a sea change in shopping with the internet. I really doubt most shops ability to survive this. The supermarkets are hanging on by killing off the opposition and their own suppliers and the fact that people still like to do a food shop in person.
 

moderator

Old-Salt
This story is a few days old but JLP have been troubled profitability-wise for quite some time now.

The Department Store model has had it's day - more a physical Internet showroom than a profit centre now. JLP is no exception and why would it be? The last two or three times time I was in the local JL (a tired and dated branch indeed) there was more staff on the shop floor than customers which speaks volumes for both, the current state of high street retailing and the management of JLP.

Next it will do a Curry's/PC World by merging where it can, its Waitrose stores into the ground floors of the nearest JL department stores, thus allowing it to close Waitrose branches.

Reputation can only carry a retail business so far.
 
I’m hardly surprised this as happened, but I am surprised they didn’t try and head it off sooner. They’ve been reluctant to change (like many) and are suffering for it. The department store model just doesn’t seem to work, it requires a ridiculous amount of staff.

If the landlords are greedy, move to sites on the edge of towns and cities, like many of the other major retailers.
 
JLP are my company's single biggest customer.

Hope a restructuring and a few closures are all it is . . .
 

Club Swinger

War Hero
Oh well I suppose there is always good old Aldi...


Or for the less discerning customer there is Lidl...

 
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JLP are my company's single biggest customer.

Hope a restructuring and a few closures are all it is . . .
Sadly no, friends in the partnership say xmas is make or break.
The partnership need to offload assets or looking good for a takeover.
 
Waitrose better survive, I don’t fancy shopping in places where normal people shop.
 

Auld-Yin

ADC
Kit Reviewer
Book Reviewer
Reviews Editor

moderator

Old-Salt
Oh well I suppose there is always good old Aldi...


Or for the less discerning customer there is Lidl...

What happens when these two reach saturation point and start competing directly against each other?

The big four are perhaps too big to be allowed to fail but they are all suffering now they have run out of manoeuvring space to outdo each other. The Sainsbury ploy to take control of Asda was seen through for the market share / market control grab that it was with the outcome being two mediocre performers propped up by Morrison's in fourth place.

Tesco are perpetually rationalising their non core activities and underperfoming with their new ventures (e.g. Jack's). Swingeing core business cost reduction measures are speeding them on in the race to the bottom. Morrison's appear to have little going for them right now. Their stores are increasingly looking as poorly managed and operated as Tesco. Sainsbury's ramming Argos outlets into supermarkets... ?

Smaller convenience type outlets (low rent, low staffing and high margins) and dark stores are where it has to end... Amazon and Ocado anybody?

(Just thinking out loud here)
 

Nemesis44UK

LE
Book Reviewer
My wife works at Waitrose so I hope things smooth out, but the amount of money they're wasting is astonishing. Staffing levels have been slashed, so customer service has eroded and theft has gone up. Free coffees and papers are costing thousands a week; the rebrand to Waitrose & Partners has cost millions and Elton John's stupid xmas ad last year was about 5 million.

The amount they have to comp unhappy, grabby customers is unreal. I've never known such an ungrateful, rude, entitled customer base as Waitrose's.

If I didn't have a vested interest, I'd be happy to see Waitrose burn, just so the snotty customers would see what it's like to shop in Asda or Lidl.
 
Waitrose better survive, I don’t fancy shopping in places where normal people shop.

Indeed, where else can you get a free coffee & paper after spending a £10 & sitting nibbling a baklava, slurping the coffee, ogling all the attractive young students on the tills at the weekend +of course all the MILF's that shop there. Mind you I let the wife go to do the real shopping at Aldi, it is much cheaper and the quality isn't that bad! :)
 

Blogg

LE
Ever tried JL online offering? It's crap.

Long delivery times, wrong goods tended to turn up, ability to click & collect at Waitrose stores sounded promising but no store really seemed geared up to it (ours wasn't) so ended up waiting at desk whilst somebody disappeared, rummaged about for a while and (eventually) returned.

Final straw was a wrong item being delivered, returned, exactly the same wrong item delivered again. Rinse and repeat.

Eventually gave up & closed account.
 
My wife works at Waitrose so I hope things smooth out, but the amount of money they're wasting is astonishing. Staffing levels have been slashed, so customer service has eroded and theft has gone up. Free coffees and papers are costing thousands a week; the rebrand to Waitrose & Partners has cost millions and Elton John's stupid xmas ad last year was about 5 million.

The amount they have to comp unhappy, grabby customers is unreal. I've never known such an ungrateful, rude, entitled customer base as Waitrose's.

If I didn't have a vested interest, I'd be happy to see Waitrose burn, just so the snotty customers would see what it's like to shop in Asda or Lidl.
Look at reviews of John Lewis & Waitrose all very high, the reason?
If you complain even over the smallest thing you get vouchers, the louder you complain the higher the value.
Never known a company to be so inbred, time served gets you promoted not on experience & skills.

I know someone in a distribution hub that has to take orders from a semi illiterate partner as they have been at the partnership 1 week longer, the senior partner smokes weed, is always late and goes early but plays the race card well. Has been drunk on duty but still the sites management say they are hard working, its a joke but now the joke is on the partnership.

Christmas will be the big test, fail it and the sharks will be circling ready to take the company over for little ££
 
What happens when these two reach saturation point and start competing directly against each other?
I often wonder about this when I see the proximity of supermarkets to each other in Germany - well.... Bavaria.
I suppose their planning is based on population levels at certain sites - there seem to be a preponderance of Lidl, Aldi Sud, Rewe, Edeka, Norma, Tegut and Netto branches near to one another and thriving.
 

Club Swinger

War Hero
What happens when these two reach saturation point and start competing directly against each other?

The big four are perhaps too big to be allowed to fail but they are all suffering now they have run out of manoeuvring space to outdo each other. The Sainsbury ploy to take control of Asda was seen through for the market share / market control grab that it was with the outcome being two mediocre performers propped up by Morrison's in fourth place.

Tesco are perpetually rationalising their non core activities and underperfoming with their new ventures (e.g. Jack's). Swingeing core business cost reduction measures are speeding them on in the race to the bottom. Morrison's appear to have little going for them right now. Their stores are increasingly looking as poorly managed and operated as Tesco. Sainsbury's ramming Argos outlets into supermarkets... ?

Smaller convenience type outlets (low rent, low staffing and high margins) and dark stores are where it has to end... Amazon and Ocado anybody?

(Just thinking out loud here)
I could be mistaken here, but I'm sure I heard that the ownership of Aldi and Lidl was two brothers? So they are keeping it in the family regardless of any differences they may have..

Edit: After using a well known search engine I found this.

 
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