John Lewis to persist with housing venture despite ‘extreme challenges’

John Lewis strategy director Nina Bhatia has maintained that the retailer’s commitment to its housing venture was “unwavering” in The Telegraph, regardless of who will succeed Dame Sharon White as chairman. 

This comes after last December, the retailer revealed plans to build 1,000 rental properties on its land as part of a plan to diversify its business. 

These homes, which would be a part of the UK’s growing ‘build-to-rent’ property market, aim to raise standards in rental property, per the Partnership’s aims. The retailer is both developer and operator of the buildings.  

However, John Lewis has since suffered setbacks in its flagship scheme to build more than 400 flats above a Waitrose in West Ealing. 

Last month, the retailer’s advisers warned that it faced “extreme challenges” in making money from its scheme, as planning documents revealed the development could result in a negative return of £57m for the business.

While Bhatia wrote in The Telegraph that creating new and long term businesses is “in the DNA of the partnership”, she also admitted that John Lewis had “rightly” faced questions over why it was moving into property. 

Nevertheless, she stressed the group would always prioritise its retail brands. 

Bhatia added that John Lewis would manage its properties for the long term, rather than selling them off, maintaining that the group would also provide as much affordable housing as possible. 

The group also plans to work with local charities and communities to provide space for their activities.