John Lewis Partnership to withdraw from Build to Rent business

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The John Lewis Partnership has announced it is withdrawing from its Build to Rent property business, citing a fundamental shift in the economic conditions that underpinned the venture when it launched in 2020.

The Partnership remains focused on its core retail brands, John Lewis and Waitrose, where significant investment programmes are underway; it is also investing in the growth of John Lewis Money as an enabler of its retail strategy.

John Lewis is investing £800m over multiple years to elevate the shopping experience, including the recent return of Topshop and Topman to physical retail. Waitrose is investing £1bn in the brand and across its store estate. 

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. Unfortunately, the current climate – higher interest rates, inflationary pressures and a more cautious property market – has meant the model no longer meets the Partnership's investment criteria. 

Since we embarked on the rental property plans in 2020, we have made significant progress with our core retail strategy. This has seen us invest heavily in our customer offer for our unique brands John Lewis and Waitrose, simplifying our business and strengthening our balance sheet. The strategy is progressing well and involves modernising our stores, enhancing our digital platforms and improving our supply chain to provide the best possible quality, service and value to our customers. We remain committed land owners in our communities and continue to invest significantly in our property assets and retail offer.

We’re proud of what we’ve achieved in terms of progress with three planning applications and managing third party BTR homes for residents to a high standard. We will fulfil our existing management contracts at four BTR sites as part of a responsible transition out of the business.

Notes to Editors

About the John Lewis Partnership 

The John Lewis Partnership owns and operates two of Britain's best-loved retail brands - John Lewis and Waitrose. Started as a radical experiment over a century ago, the Partnership is now the largest employee-owned business in the UK. The Partnership is purpose-driven, existing to create a fairer and more sustainable future for our Partners, customers, suppliers and communities. Our Purpose not only inspires our principles, drives our decisions and acts as our guide to be a force for good, it steers us to do things differently and better - all in service of creating a happier world for everyone and everything we touch.

John Lewis operates 34 shops across the UK as well as johnlewis.com. Waitrose has 315 shops in England, Scotland, Wales and the Channel Islands, including 47 convenience branches, and another 29 shops at Welcome Break locations. The retailer's omnichannel business includes the online grocery service, Waitrose.com, and specialist online shops including waitrosecellar.com for wine.