John Lewis has unveiled plans to restructure several in-store services, placing approximately 200 jobs at risk as the retailer continues its broader transformation strategy. The proposed changes include the closure of its foreign currency exchange counters and the consolidation of dedicated gift-wrapping services, reflecting evolving consumer preferences and the growing shift toward digital retail solutions.
Although no final decision has yet been reached, the company has confirmed that it has begun a formal consultation process with affected employees. If approved, the proposed redundancies are expected to take effect during the autumn, marking another significant step in the retailer’s ongoing efforts to modernise its operations while adapting to changing patterns in customer behaviour.
The announcement comes as the iconic British retailer seeks to strengthen long-term profitability following several years of restructuring, investment in digital capabilities, and operational cost management.
Nearly 200 Employees Could Be Affected
John Lewis confirmed that around 200 employees may be impacted by the proposed restructuring programme, with consultations currently underway before any final decisions are made.
The retailer stated that the review focuses on services that have experienced declining customer demand, particularly foreign currency exchange facilities located within department stores. According to the company, increasing numbers of customers now purchase travel money online before collecting it from stores, reducing the need for dedicated exchange counters.
In addition, many travellers have shifted towards using debit cards, credit cards, and digital payment platforms while abroad, significantly lowering demand for traditional bureau de change services.
The proposed closure would affect approximately 30 John Lewis stores across the United Kingdom.
Alongside the foreign exchange review, the retailer is also proposing changes to its gift-wrapping operations. Rather than maintaining separate gift-wrapping stations, the service would instead be offered directly at checkout tills, allowing customers to continue accessing the service while reducing operational costs.
This change is expected to affect gift-wrapping operations in around 25 stores nationwide.
Retailer Says Changes Reflect Evolving Consumer Preferences
John Lewis maintains that the proposals are driven by changing shopping habits rather than a reduction in customer service standards.
A company spokesperson explained that the business continues to modernise its retail proposition to better meet customer expectations while improving operational efficiency.
The retailer emphasised that more consumers are embracing online services for travel money purchases and increasingly relying on cashless payment methods during international travel. These shifts have reduced demand for in-store foreign exchange facilities that were once considered an essential retail service.
Similarly, integrating gift wrapping into checkout areas is intended to improve accessibility while allowing stores to utilise staff and retail space more efficiently.
John Lewis stressed that employees affected by the proposals would receive full support throughout the consultation period, including opportunities for redeployment into alternative roles wherever possible.
The company reiterated its commitment to working closely with staff before any final decisions are implemented.
Part of a Wider Business Transformation Strategy
The latest restructuring initiative forms part of a broader programme of operational changes introduced under the leadership of Chairman Jason Tarry, who assumed the role in 2024 following several challenging years for the John Lewis Partnership.
The business has focused heavily on improving efficiency, simplifying operations, and strengthening financial performance after facing intense competition from online retailers, inflationary pressures, and changing consumer spending habits.
Earlier this year, the retailer closed its housebuilding division, a move that also resulted in job losses as part of wider efforts to concentrate investment on its core retail operations.
Despite ongoing restructuring, John Lewis has also reported encouraging signs of recovery. In March, the partnership announced it would reinstate staff bonuses for the first time in four years, reflecting improving business performance after a prolonged period of financial pressure.
The return of employee bonuses represented an important milestone for the company, particularly after bonus payments were suspended during the COVID-19 pandemic—the first interruption to the long-standing tradition since 1953.
Financial Performance Shows Signs of Improvement
Although John Lewis continues to implement cost-saving measures, recent financial results indicate that the retailer is making progress in strengthening its underlying business performance.
The company reported a pre-tax loss of £21 million during its latest financial year. However, this figure was largely attributed to approximately £120 million in one-off exceptional costs, primarily related to write-downs involving legacy technology systems undergoing replacement.
Excluding these exceptional items, the retailer delivered stronger operational results.
Underlying profits increased by 6% to £134 million, while total group sales rose by 5% to reach £13.4 billion.
The figures suggest that the company’s core retail activities continue to recover despite ongoing restructuring and investment in modernisation.
Waitrose Continues to Outperform Department Stores
Financial results also highlighted the stronger performance of Waitrose compared with the John Lewis department store business.
Sales at Waitrose increased by 7% to £8.5 billion during the financial year, demonstrating resilient consumer demand within the grocery sector.
By comparison, John Lewis department stores recorded sales growth of 3%, reaching £4.9 billion over the same period.
The differing growth rates underline broader retail trends, with supermarkets generally benefiting from more consistent customer spending compared with discretionary retail categories such as fashion, home furnishings, and luxury goods.
Nevertheless, the department store business continues to show gradual improvement as management pursues investments in digital services, customer experience, and operational efficiency.
Digital Transformation Continues to Reshape Retail Operations
The proposed closure of foreign exchange counters reflects a wider transformation taking place across the UK retail sector.
Consumers increasingly expect convenient digital services, online ordering, click-and-collect options, and mobile payment solutions, reducing demand for certain traditional in-store offerings.
Retailers are responding by reallocating investment toward technology, omnichannel shopping experiences, and services that better align with evolving customer expectations.
For John Lewis, simplifying in-store operations forms part of a long-term strategy designed to improve productivity while preserving customer service standards.
While the proposals have understandably created uncertainty for affected employees, the retailer argues that adapting to changing consumer behaviour is essential to maintaining competitiveness in an increasingly digital retail environment.
The outcome of the consultation process will determine whether the proposed service closures proceed later this year. If approved, the changes will represent another milestone in John Lewis’ ongoing transformation strategy as it seeks to balance operational efficiency, financial sustainability, and evolving customer expectations within the highly competitive UK retail market.