This is what John Lewis says about store closures amid reports it could shut more shops only months after agreeing deal to keep Sheffield branch

The department store giant is understood to be considering the closure of eight shops in a bid to cut its property costs.

The plan, first reported by The Sunday Times, comes just eight months after the retailer announced the closure of eight outlets following the initial impact of the pandemic.

John Lewis, which currently operates 42 stores, is in the middle of a shake-up aimed at increasing its online sales.

In August 2020 the John Lewis Partnership announced that it had agreed a two-decade lease, to run until 2040, with Sheffield Council on its branch in Barker’s Pool, incorporating plans for a refurbishment of the building.

The deal came shortly after members of the council’s cabinet committee approved proposals to retain the store as part of the £480 million Heart of the City II project – allowing the authority to buy out John Lewis’ ‘nominal’ lease and give the employee-owned retailer money towards the cost of improvements.

The cost of buying out John Lewis’ leasehold interest was £3.4 million, it later emerged – £3 million for the lease itself, and an extra £400,000 to cover stamp duty land tax, lawyers and legal fees.

When asked whether the Sheffield deal was affected by any proposal to shut stores, a John Lewis spokeswoman said: “This coverage has been driven by a speculative article which appeared over the weekend and we don't comment on speculation.”

The Barker’s Pool building was constructed in the early 1960s as a replacement for the old Cole Brothers department store on Fargate. John Lewis acquired Cole Brothers in 1940 and traded under the name in Sheffield until 2002.

The council owned the freehold of the land in Barker's Pool, but John Lewis had a 99-year lease on the site.

Sheffield’s high street has been hit hard by the pandemic, making John Lewis’ presence even more crucial. Debenhams, and the combined Dorothy Perkins and Burton on The Moor, are among the biggest casualties.

John Lewis staff will be updated on the company's recent trading on March 11.

Under the Government’s ‘roadmap’ to ease lockdown restrictions, non-essential retailers are expected to reopen in April.

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