16th
Mar 2021
John Lewis’ strategy over the next 10 years is that 40% of its profits will be provided by non-retail activities including housing.
The retail giant recently disclosed that its retail property portfolio’s value has plummeted by more than half from 18 months ago.
The partnership last year has ‘earmarked’ 20 of its Waitrose and John Lewis sites to be turned into buildings that offer “quality and sustainable housing.”
The shift away from its retail model is down to its pre-tax loss of £517m for 2020, as well as having to write down its property portfolio vale by £648m.
The company issued a statement saying: “With retail margins declining and the partnership wishing to return more benefit to partners, customers and communities, we are aiming that, by 2030, 40 per cent of our profits will come from areas outside retail, namely financial services, housing and outdoor living”.
The planned housing will fall under the Build To Rent category, and it is more than likely that a renowned and established lettings company will manage the properties. All furnishings, food delivery options for tenants will be provided by John Lewis and Waitrose.
This is part of its five-year plan to deliver an annual pre-tax profit of £400m.
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