John Lewis moves to cut costs through hundreds of job losses

John Lewis is to cut 387 jobs as part of its efforts to limit costs as the retail sector prepares for a more difficult year.

The department store chain said the jobs would go in a restructuring of its home fittings service that would see administrative roles shift to a central hub in Manchester.

It was also planning to outsource food preparation for its 'The Place to Eat' restaurants.

John Lewis said the decisions affected 773 staff - known as partners - who were now part of a redundancy process that would give them the chance of securing one of 386 new roles being offered.

The partnership, which has previously warned of a tougher climate for profitability during 2017, is not alone in seeking to offset cost pressures threatening the bottom line.

The pound collapsed in value against a basket of major currencies in the wake of the Brexit vote - by up to 20% versus the dollar alone - making imported goods more expensive.

It has left producers and retailers under pressure to pass those extra costs on, with consumer price inflation taking off before Christmas though many stores limited price rises ahead of the crucial festive season.

Official figures released earlier this month showed retail sales fell in January as shoppers faced a jump in food and fuel prices though more recent surveys have suggested some resilience remains.

John Lewis warned last month that partner bonuses would fall this year as it faced up to the tougher price climate.

John Lewis operations director, Dino Rocos, said its decision was a response to the changing needs of customers amid "a backdrop of structural changes in the retail industry".

"Our Partners are passionate about offering the very best customer service and 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.

"We understand that for some this will mean a period of change, and we are working with affected partners over the consultation period to give opportunities for redeployment in new roles wherever possible," he said.