John Lewis, TUI to Shut Shops as Consumer-Facing Industries Continue to Feel Pressure

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John Lewis, TUI to Shut Shops as Consumer-Facing Industries Continue to Feel Pressure

 John Lewis, TUI to Shut Shops as Consumer-Facing Industries Continue to Feel Pressure

Source: George Rudy, Shutterstock

 Summary

  • John Lewis and TUI have decided to shut down shops.
  • John Lewis would not be reopening eight stores after the lockdown is relaxed, while TUI said that it would shut 48 retail stores.

The consumer-facing industries continue to reel under pressure as many brands are still looking for ways to be stay afloat.  John Lewis and TUI (LON: TUI) today announced their plans to shut down shops. While John Lewis has said that it would not be reopening 8 of its stores after the lockdown is relaxed, TUI said it would shut 48 retail stores in Britain. Earlier, it had shut 166 shops in the month of XXX.

Europe is bracing for the third Covid wave as cases have been surging and many countries have announced fresh lockdowns, which would mean another lost summer for many sectors. TUI, which has its headquarters in Germany, has had to depend on state aid for survival through the pandemic. TUI said that it was closing 48 stores as both British high street and travel industries are under extreme pressure.

In February, the company had said that it had 2.8 million bookings already for 2021 summer.  However, the stocks of the company were up by 6.42 per cent to GBX 377.70 at 14:50 GMT +1 on 24 March, as the closure of more shops will result into cost savings for the company.

Following the closure, 273 employees would lose their jobs. TUI said the company would offer new opportunities in its remaining stores and in customer support.

Adding more pressure on the already stressed travel and tourism industry, Labour has said that France should be put on red list of countries from which travel should be banned to prevent the spread of vaccine-resistant viruses from spreading to the UK.

Also read: How the UK Markets’ performed amid the EU-UK vaccine trade war?

The retail behemoth John Lewis said that it was unsustainable for it to maintain large stores in certain locations due to financial constraints. John Lewis would reopen 34 of its stores from 12 April except those in Glasgow and Edinburgh. Its decision to shut 8 stores would jeopardise 1,465 jobs. It also said that the company expects 60-70 per cent of its sales to come from the digital space going forward.

The company added that it would be consulting with those who would be losing their jobs to find rehabilitation for those affected in alternative roles. The stocks of the company were down by 5.56 per cent to GBX 0.85 at 14:50 GMT +1 on 24 March 2021.

 

 

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