John Lewis to cut nearly 400 jobs across the department store's restaurants and home-fitting services

John Lewis department stores reported a 2.7 per cent rise in like-for-like sales in the six weeks to 31 December (Reuters)

Department store John Lewis announced on Thursday that it is expected to cut almost 400 jobs across its restaurants and home fittings services as a result of structural changes sweeping through the UK's troubled retail industry.

In a statement, the company said that 387 jobs would likely be cut as a result of a reshuffle. It said that around 773 staff had entered redundancy consultation and been given the opportunity to apply for 386 new roles.

Under the plans, the group said that employees would be able to “work more flexibly and ultimately open up opportunities for more skilled roles with more potential for career progression”.

Dino Rocos, operations director at John Lewis, said that employees are “passionate about offering the very best customer service”.

“These proposals will allow us to modernise our business as it adapts to the changing needs of our customers and the role that shops play in their lives,” he said.

John Lewis Partnership, which owns the department stores as well as retailer Waitrose, warned earlier this year that its annual bonus for staff could be cut as the effects of a weaker pound start to sting the business.

The pound has suffered a tumble since the UK voted to quit the EU back in June and retailers and that has resulted in a surge in prices for big importers.

“Although we expect to report profits up on last year, trading profit is under pressure,” Charlie Mayfield, chairman of the group, said back in January.

He said that the pressure John Lewis faces "reflects the greater changes taking place across the retail sector" and that he expects these to "quicken, especially in the next 12 months as the effects of weaker sterling feed through."

John Lewis department stores reported a 2.7 per cent rise in like-for-like sales in the six weeks to 31 December while Waitrose enjoyed a 2.8 per cent rise over the period.