"Our rental property ambition was based on a very different financial environment: one with more stable investment returns, lower borrowing costs and more affordable construction costs. The current climate, higher interest rates, inflationary pressures and a more cautious property market, means the model no longer meets our investment criteria."
"The decision marks a significant strategic reset under Jason Tarry, the former Tesco executive who became chair in 2024. Tarry has sought to restore the partnership's focus on retail performance after several years of financial strain and cancelled staff bonuses."
"The group is now pursuing an £800m investment programme aimed at revitalising its department stores, alongside a £1bn investment in its Waitrose estate of 320 shops. Recent initiatives include a high-profile partnership to bring Topshop concessions into John Lewis stores as it seeks to win back younger customers."
John Lewis Partnership has withdrawn from its build-to-rent housing initiative, a diversification strategy launched under former chair Sharon White aimed at generating 40 percent of profits from non-retail ventures by 2030. The partnership with Aberdeen was designed to deliver approximately 1,000 rental homes across London and Berkshire sites, with Aberdeen pledging £500m in institutional investor funding. However, the funds were never secured due to shifting macroeconomic conditions including higher interest rates, inflationary pressures, and increased construction costs. Under new chair Jason Tarry, the group is refocusing on retail performance, investing £800m in department store revitalization and £1bn in its Waitrose estate while pursuing initiatives like Topshop concessions to attract younger customers.
Read at Business Matters
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