The John Lewis Partnership has confirmed it plans to enter the build-to-rent market, having identified 20 sites it owns that could provide housing.
The business intends to submit planning applications for two sites in the Greater London area in the new year.
John Lewis, which is looking to achieve a profit of £400m in five years, said entering this market would also allow it to furnish the properties with its John Lewis home products and deliver food from its Waitrose stores.
It is already a landlord at three properties and considers moving into the BTR market an “obvious extension” for the company. Talks with developers and investors are under way.
The firm is also to invest £1bn over five years to drive forward its online business and modernise its shops. It is looking to expand its shop formats and click-and-collect points to be more locally accessible.
See also: Could a John Lewis home change the future of BTR?
In addition, John Lewis has committed to becoming a net-zero-carbon business by 2035 via a commitment to only source its supermarket food from net-zero farms in 15 years and to halve its food waste by 2030, while all its John Lewis product categories will be included in “a buy back or take back solution” and key raw materials in its own-brand products will be from sustainable or recycled sources by 2025.
Sharon White, chairman of the John Lewis Partnership, said: “We have seen five years of change in the past five months and Waitrose and John Lewis have responded with great agility. Our plan means the John Lewis Partnership will thrive for the next century, as it has the last.”
“We are adapting successfully to how customers want to shop today, while showing the partnership is improving lives and building a more sustainable future. We will share our success with our customers, partners – who own the business – and our communities.”
Nina Bhatia, executive director of strategy and commercial development at the John Lewis Partnership, added: “This is a bold plan to grow our business and get us much closer to our customers. Waitrose and John Lewis are two of the country’s most trusted brands and we will offer the best products and customer service on the high street and online.”
“We are 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. Our plans will firmly establish Waitrose and John Lewis as the go-to brands for customers that care about quality, value, and sustainability.”
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