John Lewis Partnership has warned stores across the country are at risk after recording a £517 million loss last year.
With no indication so far which branches will be closing, one Aberdeen councillor said losing the city’s George Street store would be “devastating”.
The pandemic has sent profits plunging as the firm announced its first ever annual loss since opening back in 1864.
The group, which also owns upmarket grocery chain Waitrose, expects results to get worse over the year ahead.
With 42 locations across the country, it has been confirmed that talks are ongoing with landlords and a final decision on closures will be made at the end of the month.
Store closures last summer impacted 1,300 members of staff and this announcement suggests that further jobs could be at risk.
Like many towns and cities across the UK, Aberdeen’s high street has been hit hard by the pandemic – losing staples such as Debenhams just weeks ago.
George Street and Harbour councillor Ryan Houghton believes the loss of the retailer would be a “real blow” to his ward.
He said: “Its a real worry, not just for the city but also for businesses in the local area as John Lewis brings in a lot of footfall for them – it would be such a shock to economic retail.
“Its also important for people in Aberdeenshire, if this was to happen it would be the third large retailer to leave this city following the departure of Debenhams and BHS.
“I think for shops around the area it would be a real blow and not just them but for the people employed by the store it would be devastating.”
However there are hopes that ambitious proposals by Aberdeen City Council to reinvent the city, which were backed by Wednesday’s budget, will be enough to keep the department store.
Mr Houghton added: “Announced in the budget were the council’s £150m backed plans for the city including the refreshed masterplan, which will take in that part of George Street and the area by John Lewis.
“Footfall is a really important issue, the area is a major artery into the city and we’ll do all we can to get behind businesses.”
Having been spared the chop last year, confidence in cities re imagined £150m masterplan and those specific to the George Street area give hope that the store will reopen.
Adrian Watson, chief executive at Aberdeen Inspired added: “John Lewis Partnership Aberdeen remains an iconic brand in our city centre and we hope that this remains the case.
“Its heartening that there is some real desire to invest in the heart of the city and of course we not only want to hold onto the likes of John Lewis, but, attract new businesses in and from across the sectors.”
The group has announced that it is looking to invest £800 million in the business as part of an overhaul effort, and hopes to be back to profit in 2022-23, with £200 million next year and £400 million by 2025-26.
Chairwoman Sharon White said: “There is no getting away from the fact that some areas can no longer profitably sustain a John Lewis store.
“Regrettably, we do not expect to reopen all our John Lewis shops at the end of lockdown, which will also have implications for our supply chain.”