John Lewis Partnership – well known for its departments stores and Waitrose – is set to enter the Build to Rent market. The announcement follows its new five year growth strategy where bosses aim to triple the company’s annual savings – from £100m to £300m each year by 2022. The hope is that this new move into the Build to Rent sector coupled with other changes across it stores and online – combined with growth – will push its profits to £400m by 2025. The Partnership has a long term target to secure 40% annual income from non-retail activities.
“We’re creating new inspirational services for customers where strong ethical values and peace of mind matter, like reusing and recycling products, personal savings and rented housing.”Nina Bhatia, Executive Director of Strategy and Commercial Development, John Lewis Partnership
John Lewis Partnership has identified 20 of its own sites that could be used to benefit local communities by providing quality and sustainable housing – while providing a stable income for the Partnership.
In the new year, John Lewis Partnership plans to submit planning applications for two sites in Greater London. Entering the Build to Rent market also provides opportunities for John Lewis Partnership’s to furnish the properties using its John Lewis Home products from its department stores and deliver Waitrose food to residents – a strategic move to join its brands closer together.
“We’re a landlord already at three of our properties so this is an obvious extension for us. And we’re now talking to developers and investors who can help us achieve our ambitions.”Spokesperson for John Lewis Partnership
The Partnership will work with investors and developers to build the Build to Rent homes – which will provide a stable income for the company. Although the sites have not been announced, the new homes are likely to be built beside or above stores or on other land the Partnership owns – and is likely to be managed by an established lettings company.