John Lewis becomes a landlord by building hundreds of apartments

The John Lewis partnership has taken its biggest step yet to become a landlord after winning permission to build hundreds of flats above a Waitrose store.

The group, which owns department stores John Lewis and supermarket Waitrose, will build 353 apartments on the site in Bromley, south London.

It has made efforts beyond retail, including financial services and real estate services.

But critics have urged incoming chairman and former Tesco hound Jason Tarry to focus on the basics of retailing when he replaces Dame Sharon White in September and scrap property development plans.

Bromley Council approved the £200m development by a 10-5 vote. The proposals include replacing the existing shop with three towers, the tallest of which will be 24 storeys.

Bricks and mortar: John Lewis Partnership to build 353 flats in Bromley, south London

About 30 apartments will be defined as “affordable”. Katherine Russell, director of building for rent at John Lewis Partnership, said: “This gives us the opportunity to improve the area, create vital homes for the people of Bromley and a Waitrose.”

The development is linked to a £500m investment deal with Abrdn to build around 1,000 rental homes.

The 160-year-old company wants to build 10,000 homes in 10 years. As part of the plans, it wants to build 428 homes over one of its Waitrose stores in west London.

But they face an uphill battle for this project. A planning inspector will assess the plan after a group of Ealing residents campaigned against the flats.

John Lewis is struggling to restore staff morale and win back disaffected shoppers as rival Marks & Spencer has grown ever larger.

In April, chairman Tarry, 57, said: “The partnership is unique and I have long been an admirer of the employee-ownership model, its values ​​and partner-driven customer service.

“This starts with a strong focus on being brilliant retailers for customers and investing in growth.” After a troubled few years, John Lewis Partnership returned to profit in the spring – but did not reintroduce a staff bonus.

The upturn in financial fortunes is a boost for White, who said John Lewis would not return to sustainable profit before the 2028 financial year.

Experts said the main reason behind a profit in 2023 was an aggressive £900m cost-cutting program, rather than an increase in sales at Waitrose or the company’s department stores.

In its department stores, the retailer has been competing with rivals M&S and Next, which have increased their range of big fashion names.

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