John Lewis & Partners has announced plans to close a UK store at a loss of 127 jobs.

On Wednesday, the chain said it will close Knight & Lee & Partners in Southsea, following an 18 month review into the business.

It said the decision is part of John Lewis’s strategy plan to prioritise differentiation, with some resizing, repurposing or relocating over time.

The store – its smallest in the UK – will close down in July 2019.

Citing the reasons for closures it said the store’s physical condition, size, age and shape of the property ‘restricted customer offer’ while the modernising the building itself would have required significant investment.

The closure puts all 127 Partners at risk of redundancy, however it said every effort will be made to find them roles at surrounding John Lewis and Waitrose branches.

"We have not taken this decision lightly and we considered every implication for our Partners, customers and the community. However, a unique combination of factors, including the significant investment required and the opportunity to sell the property freehold, makes this the right decision for the financial sustainability of our business," Dino Rocos, at John Lewis, said.

“We also want to bring the very best of what John Lewis & Partners has to offer to all of our customers and, in Southsea, we believe we can better serve them through our Southampton and Chichester shops, and online with an improved Click & Collect offer at Waitrose & Partners Southsea.

“Our team at Knight & Lee are a loyal and long-serving team of Partners. We are doing everything we can to offer them roles elsewhere in our business and finding suitable roles for as many Partners as possible is an absolute priority.  Nevertheless, there will unfortunately be some redundancies and we will work hard to support all the Partners affected.

“We want to thank our Partners and Knight & Lee customers for their loyalty over the years.”

Today’s announcement comes just one week after John Lewis warned staff may miss out on their annual bonus for the first since since 1953 this year.

Christmas sales actually rose at Britain’s biggest department store, which also owns Waitrose, but full-year profits are set to fall substantially despite setting a weekly sales record over Black Friday.

John Lewis is owned by its staff – which it refers to as partners – and as such it means that profits at the store are traditionally shared out to all staff each year.

"The board will need to consider carefully in March, following the usual process, whether payment of a bonus is prudent in the light of business and economic prospects at that time," a statement said.

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