The UK’s largest employee-owned business said the move is part of a broader strategic decision to refocus on its core retail brands under executive chair Jason Tarry
International News via Reuters:
British retailer the John Lewis Partnership said on Wednesday it is withdrawing from its Build-to-Rent property business, blaming a “fundamental shift” in the economic conditions that underpinned the venture when it launched in 2020.
The UK’s largest employee-owned business, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, said the move is part of a broader strategic decision to refocus on its core retail brands under executive chair Jason Tarry.
The partnership’s venture into BTR formed part of former chair Sharon White’s strategy to diversify. She had a now-abandoned target to generate 40% of the partnership’s revenue from outside retail.
PROPERTY AMBITION WAS BASED ON DIFFERENT ENVIRONMENT
“Our rental property ambition was based on a very different financial environment: one with more stable investment returns, lower borrowing costs and more affordable costs to build homes,” said a partnership spokesperson.
Despite not building a single home, the partnership was “proud” of what it achieved in BTR, the spokesperson said, noting the progression of three planning applications for about 1,000 homes and the managing of third-party BTR homes at four sites.
Tarry, a former Tesco executive, has focused on modernising
John Lewis and Waitrose stores, enhancing digital platforms and improving the supply chain.
The partnership is expected to publish full-year results next month.
Reporting by James Davey; Editing by Toby Chopra
