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The John Lewis Partnership has taken its biggest step yet towards becoming a landlord after winning the go-ahead to build hundreds of apartments above a Waitrose store.
The group, which owns John Lewis department stores and Waitrose supermarkets, will build 353 apartments on the site in Bromley, south London.
It has been venturing into initiatives outside of retail, including financial services and real estate services.
But critics have urged incoming chairman and former Tesco chief executive Jason Tarry to focus on retail fundamentals when he takes over from Sharon White in September and to abandon property development plans.
Bromley Council approved the £200m development in a 10-5 vote. Proposals include replacing the existing store with three towers, the tallest of which will be 24 storeys high.
Bricks and mortar: John Lewis Partnership to build 353 apartments in Bromley, south London
Around 30 apartments will be designated as “affordable”. Katherine Russell, director of build-to-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 connected 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 its plans, it also wants to build 428 homes at one of its Waitrose stores in west London.
But the project faces an uphill battle. A planning inspector will assess the plan after a group of Ealing residents campaigned against the flats.
John Lewis is struggling to rebuild staff morale and win back disillusioned shoppers, while rival Marks & Spencer has gone from strength to strength.
In April, chairman Tarry, 57, said: ‘The partnership is unique and I have long admired the employee ownership model, its values and member-led customer service.
“This starts with a clear focus on being great retailers for customers and investing in growth.” After a tough few years, John Lewis Partnership returned to profit in the spring but did not reintroduce a staff bonus.
The change in financial fortunes is a boost for White, who had said John Lewis would not return to sustainable profits before the 2028 financial year.
Experts said the main reason behind a profit in 2023 was an aggressive £900m cost-cutting programme rather than a boost 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 boosted their range of big fashion names.
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