JJB Sports' plan to shut 72 stores leaves High Street reeling as the City warns 40,000 jobs could be axed

Details of the planned closures comes after it was revealed today that more than up to 40,000 City jobs could be axed as banks and stockbrokers deal with one of the worst financial crises in decades.

It is twice the figure first feared and amounts to one in 10 jobs in London's financial district

Wigan-based JJB, which has more than 400 outlets, began implementing the closure plan earlier this year after a business review by new management.

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It said the stores in question were unlikely to make any "significant contribution" to group profits and that many were already close to newer and larger stores in its estate.

The sites will shut by the end of this month.

Despite the news from JJB and the City, official employment figures released today showed that there was a record number of people in work.

A total of 29.5 million people were in work in the three months to February - the best figures since records began in 1971. And the number of people registered unemployment fell by 39,000 to 1.6 million.

But official employment figures have a nine-month lag, meaning they provide a snapshot of the economy last August before the credit crunch started to bite.

JJB said 1,200 jobs will be affected overall, but 400 of the positions will be deployed elsewhere in the business.

Seven of the sites are due to re-badged as Original Shoe Company, a retailer acquired by JJB earlier this year.

The moves were announced as JJB said adjusted profits fell 28% to £33.8 million in the year to January 27.

A £25 million hit relating to the cost of closing the stores meant bottom-line profits fell 72 per cent to £10.8 million.

JJB joined other retailers today in warning that it did not expect any respite from the difficult economic conditions in the short term.

It said total revenues for JJB stores and fitness clubs for the seven weeks to March 16 were 3.5 per cent lower than the same period last year, while margins also came under pressure as a result of the competitive trading conditions.

JJB's fortunes have been impacted by its exposure to the replica kit market and the failure of any of the home nations to qualify for this summer's Euro 2008 football tournament.

The company has looked to offset its reliance on replica kits by increasing the proportion of "own brand products" in its stores, adding to existing examples such as Olympus, Patrick and Lotto.

As part of its business review, it has increased the frequency of deliveries to its stores, introduced a store staff incentive scheme and opened a training academy in Wigan.

The company has also committed to open more combined fitness clubs and superstores, a format which has so far proved successful.

The changes are being overseen by Chris Ronnie, who became chief executive in the summer after founder David Whelan left the business and sold his family's holding to a joint venture formed by Icelandic financial group Exista.

Mr Ronnie previously worked for Umbro and Sports World owner Sports Direct.