JOHN Lewis is poised to join other high street supermarket giants by entering the travel sector as fears grow of major cuts among traditional high-street agents following a difficult summer.
The department store, which owns Waitrose, this week revealed details of a white label tie-up with Expedia to create Greenbee.com targeting what the company described as the “staggering” amount John Lewis credit card holders spend on travel.
The move mirrors a similar partnership between Tesco and Lastminute.com, with the online retailer understood to be keen to develop an in-store presence such as the First Choice pods in Sainsbury’s and Asda.
Greenbee managing director James Furse has “big ambitions” for the site, to incorporate Cox and Kings’ long-haul holidays in the New Year, although in-store pods are not on the cards.
“We wanted to have both the scope of Expedia and the tailored offering of Cox and Kings. It’s not a mass-market product. We are ambitious for travel but must find our feet first,” he said.
Elsewhere, Harvey World Travel will shortly open four more outlets in Morrisons, taking the total to seven; Asda-travel.co.uk is reviewing its tie-up with Chelsea Village Travel’s Wefly.co.uk and may add cruise; and Lidl has not ruled out following up last month’s promotion selling Air Berlin flight vouchers.
At the same time, United Co-op Travel has revealed plans to put implants dubbed “shops in a box” into 25 to 30 of its group’s general convenience stores. This would involve in-store computers linked to a call centre for customers to book holidays.
Group general manager Mike Greenacre said another option was for agents and convenience stores near each other to cross-promote services.
Director of retail sales at Thomas Cook Simon Robinson said it would be “foolish” to underestimate the supermarkets’ move into travel.
As retail giants strengthen their position in travel experts are predicting a scaling back among the big four due to difficult trading conditions.
Former MyTravel boss and On Holiday Group chief executive Steve Endacott predicted mass shop closures totalling around 300 stores in the next couple of months. He believes his former employer will be at the forefront of closures following its admission the UK business would lose £15 million this year.
MyTravel conceded its distribution model is changing with more business moving online but denied there are “plans for mass store closures”.
Travelzest chief executive Chris Mottershead said: “It wouldn¹t surprise me if shops closed because of the pressures this summer.”
Advantage managing director John McEwan, a former head of Thomson’s retail estate, said multiples will be looking at their underperforming shops, so independents could “fill the boots they would leave”.
All Leisure Group chairman Roger Allard claimed: “High-street agencies have to be a thing of the past.”
Thomas Cook and Thomson said their shops are reviewed when leases come up for renewal.
First Choice retail managing director Cheryl Powell said it will open 52 shops this year.