John Lewis is planning to turn surplus shops into affordable housing as it seeks way to survive the retail crisis caused by the coronavirus pandemic.
The department store giant, which announced last month that it may be forced to close eight stores, putting 1,300 jobs at risk, can now take advantage of the Government’s planning white paper, which will make it easier to turn abandoned commercial space into homes.
In a letter to staff, John Lewis chairman, Sharon White, said: “As we repurpose and potentially reduce our shop estate, we want to put excess space to good social use,” she said. “We are exploring with third parties the concept of new mixed-use affordable housing.”
The supermarket business has also identified horticulture as an area with growth potential and is seeking ways to build new revenue streams from assets such as the Leckford estate, its 1,600-acre farm in Hampshire, former home to company founder, John Spedan Lewis.
White, who took over as chairman in February, said that declining retail profits made it necessary for the company to move into new markets and services, including private rented housing. She has previously warned that the company is unlike to pay its annual staff bonus next year.
John Lewis, which is forecast to become a 60 per cent online retailer in the near future, is closing eight stores of its 50 department stores, putting 1,300 jobs at risk, also indicating that some Waitrose branches may face closure. “We expect to see continued rebalancing of [Waitrose] stores, opening new ones where we see strong customer demand, and potentially closing others where demand wanes,” White said.
Waitrose has closed a total of 17 supermarkets over the past two years, whilst lockdown has led to a dramatic increase in online food sales. Waitrose expects that sales through its website, which currently stand at 5 per cent, will eventually reach 20 per cent. It is also considering a tie-up with Amazon Fresh after its deal with internet grocer, Ocado, ends in October.
Two years ago John Lewis Partnership rejected reports that it was approached by Amazon to take over the Waitrose supermarket chain.
