Is John Lewis the next Department store to face problems?

[Ifailed]

profits down by 99% for the past 6 months & that includes Waitrose, so presumably the Dept Store side of things made a loss.

Are we seeing the final demise of Department Stores in the UK?

www.bbc.co.uk/news/business-45506322

I'm a massive Waitrose fan and would be gutted if our local store closed as I use it most days. I also love my free paper and coffee but expect that will end at some point as a cost saving measure. JL on the other hand hasn't got a branch for miles, probably 1.5 hours away, so I have to use the website, which I'm not a big fan of, and I do object to paying for Click and collect for items under £30. I like the extended warranties on electricals and despite recent issues with customer services they are still my go to "shop" for home products. Have only rarely purchased clothing from them.

I think their rebranding and the accompanying advert is a total waste of money. I hope they can keep going.

I blame their choice to use Pippa Bloody Middleton as their 'celebrity' cook.

That showed me that Waits had lost touch with their demographic. They dropped Delia Smith for Pippa Middleton FFS

Now she is doing pregnancy column for them!

OliviaStabler Profits dropped by 77% in the previous 6 months, and that includes xmas 2017.

I'm well aware of what is happening thanks but they have a plan which I believe will work.

I haven't bought anything big from JL because I was very disappointed with the way they handled the Hotpoint tumble dryer fiasco. They weren't helpful and so I have I have voted with my wallet.

Also, I had the most unhelpful SA in one of their make up counters there. So again, I spend my money somewhere else.

Echo point about the customer services going down hill. Had no end of problems with furniture I ordered recently and I won't be using them for large goods.

I live close to a couple in the Manchester area and like a visit for a mooch but they are overpriced and if I see something I can most often get it cheaper online. The quality of their own brand stuff has declined rapidly too!

Don't think they'll go (Debs definitely will!) but I think they'll have to radically innovate to survive. M&S are trying to make more from their profitable food arm, so can see Waitrose/John Lewis both being side by side in store.

Like for like sales are actually up for John Lewis and Waitrose. The chairman has stated they are investing and paying off debts, that's why their profits are down.

I also love my free paper and coffee but expect that will end at some point as a cost saving measure

I often go to Waitrose instead of Sainsburys or Marks because I can pick up a free coffee, so not sure whether it's of overall benefit to them to entice people to shop there. I have to say I find Waitrose under-whelming though really, I was pleased that one opened in my town but I definitely prefer Marks for nicer food.

John Lewis on other other hand in our nearest city does have clothes brands you can't get elsewhere, like Jigsaw, Seasalt or Mint Velvet, so it would be interesting to see the impact on those brands if it did close. I do buy stuff online from them, especially as I can get it the next day from Waitrose, though recently I didn't buy a dishwasher from there because they make you phone up if you want to arrange them to take away your old one but with Currys I could just get it arranged online.

I wonder if they've still got costs of opening the Leeds JL store in there too?

It's a big massive shiny store in an expensive location, so must have cost them a fair bit?

On the news this morning they also said that, while sales were up, they had sold more low margin items, which was also a contributing factor.

Love JL, it’s a pleasure to shop there. Debenhams on the other hand... I think the signs are that Debs and hof will merge won’t they? I’ve always wondered why some of the big department stores don’t go for a smaller model and set up smaller size stalls in affluent market towns. Places like that have high spenders crying out for make up counters etc and maybe a narrow range of higher end items plus it gives you the click and collect ability.

Investing in capital items (eg new stores) and paying down debt affects your balance sheet, not your P&L.

Those saying that it won't go

How will it stay with those figures?

I knew John Lewis was doomed last year when I had occasion to ring its 'customer services' and was spoken to like the shit on some woman's shoe. I believe they outsourced that dept to Capita.

The delivery firm were like the keystone cops.

I'll never buy from them again. Sorry, JL, but customer loyalty isn't gained through rudeness, ineptitude and intransigence.

They have just binned Capita to take customer services back in house. Good decision!

DW and I have a (getting longer) list of things we've totally failed to get in JL, Debenhams, and HoF but which were snippety dippety plus P&P on Amazon (or less often, eBay).

One of the more subtle effects of the internet is to allow us to see if a store sells something before venturing out ... which is probably the last thing high streets and shopping centres wanted to hear.

I suppose it depends on how things turn around. According to the BBC:

www.bbc.co.uk/news/business-45506322

Their half year profits have been around £100m profit for each of the last few years and this year, it's only £1m, which isn't much at all for a supermarket chain, however many large department stores and an online retail business.

It could be just a blip and things could be back to normal next year. Or the trend could continue and next year they could lose £100m and if that continues, they'll need to drastically cut costs, close stores, borrow money for a turnaround etc.

Maybe there just isn't the demand for all these big flash stores any more? I never buy anything in JL, HoF, Debenhams, Selfridges etc and I don't know many people who do.

@Nettletheelf That's interesting - maybe they read the MN threads over the past year. I wasn't the only one with a crappy experience to say 'enough'.

Hope not , love John Lewis and we buy most large household goods from them. I've always found their customer service outstanding. Also buy school shoes there and all the children's nursery furniture , prams and car seats have been purchased there. Our buildings and contents insurance is with them too, never worry about returning anything to JL

Capita seems to be ruining lots of decent companies.

Those saying that it won't go

How will it stay with those figures?

I know at least part of what they have planned and believe it will work. Also Christmas is prime for all retailers, a majority make their profits then. If they have a good add and a good range they will make money.

SleepingInYourFlowerbed

Thanks, your post is reassuring .

As long as people expect to have everything and pay nothing the bricks and mortar model is numbered...

As long as people expect to have everything and pay nothing the bricks and mortar model is numbered...

Its a little more complicated than that, you are also ignoring the rise in department stores that put many local independent shops out of business, you can't put online shopping back in the box now and it is for highstreets and businesses to stay relevant.

WorkingitOut - I'm completely with you on White City - I'd been looking forward to it for ages and planned a trip to buy summer clothes armed with vouchers, but left empty handed.

I do however buy stuff through click and collect and then pick up from the Little Waitrose on my way home from work - very handy. I also still see them as my go-to for appliances/electricals as I am able to pay a little more for a more trustworthy experience.

I caused near apoplexy in my DH this evening when I used the words ‘re-branding’ and ‘Capita’ in the same sentence.

The Partners are the staff.

Because of the way JL are set up, the staff get a profit bonus at the end of the year.

When I worked at Peter Jones as a Saturday girl back inthe 80s, there were a few, very few, original shareholders left. They were very, very old.

Once the last of them died off, the staff effectively became the owners.