John Lewis gets permission to become a landlord by building hundreds of apartments
- The group will build 353 apartments at the site in Bromley, South London
John Lewis Partnership has taken its biggest step yet towards becoming a landlord after being given the green light to build hundreds of apartments on the roof of a Waitrose branch.
The group, which owns department stores John Lewis and supermarket Waitrose, will build 353 apartments at the site in Bromley, south London.
The company is also involved in sectors other than retail, such as financial services and real estate services.
However, critics have urged new chairman and former Tesco chief executive Jason Tarry to focus on retail fundamentals when he replaces Dame Sharon White in September and abandon plans for property development.
Bromley Council approved the £200 million development by a vote of 10-5. The proposals include replacing the existing store with three towers, the tallest of which will be 24 storeys.
Bricks and mortar: John Lewis Partnership to build 353 apartments in Bromley, South London
About 30 apartments are defined as ‘affordable’.
Katherine Russell, director of build-to-rent at John Lewis Partnership, said: ‘This gives us the opportunity to improve the area, create essential housing 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 also wants to build 428 homes above one of its Waitrose stores in west London.
But the project faces an uphill battle, with a planning inspector set to review the blueprint after a group of Ealing residents campaigned against the flats.
John Lewis is aiming to rebuild staff morale and win back disappointed customers as rival Marks & Spencer goes from strength to strength.
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 its partner-led customer service.
‘This starts with a sharp focus on being brilliant retailers for customers and investing in growth.’ After a few difficult years, John Lewis Partnership returned to profit in the spring, but no staff bonus was introduced.
The turnaround in financial position is a boost for White, who had expected John Lewis to return to sustainable profit only in the 2028 financial year.
Experts say the main driver of the 2023 profit was an aggressive £900m cost-cutting programme, rather than sales growth at Waitrose or the company’s department stores.
In its department stores, the retailer competes with rivals M&S and Next, which have expanded their offerings with major fashion brands.
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