John Lewis Partnership is strategically pursuing cost-saving and capital-raising measures, aiming to secure up to £150 million through a sale and leaseback arrangement involving 12 premium Waitrose supermarkets.
The department store’s sister brand will initiate marketing for these prime properties next week. These supermarket locations are primarily concentrated in the thriving southern regions of England and feature lucrative 20-year inflation-linked leases, as reported by Bloomberg.
While CBRE is serving as the property agent in these discussions, it’s essential to note that the finalization of this potential deal remains uncertain.
In light of a recent half-year loss of £57.3 million, John Lewis Partnership has set ambitious targets to triple cost savings to £900 million by January 2026. Nevertheless, the company recently extended its turnaround plan by two years, citing challenges such as high inflation and the ongoing cost-of-living crisis as factors affecting its progress. Chairperson Sharon White is actively addressing these issues as she leads the organization through this transformative phase.
As part of its cost-cutting strategy, the Partnership is significantly downsizing its London headquarters while actively seeking new central London offices.
Furthermore, John Lewis Partnership is diversifying its portfolio to drive its revitalization efforts. In the previous year, the organization established a ‘Build to Rent’ business, with plans to develop 1,000 homes. This strategic move holds the potential to contribute to 40% of the group’s profits by 2030.
John Lewis Partnership, the esteemed owner of 35 department stores and 329 Waitrose locations, previously considered selling a minority stake in the group to raise a substantial £1 billion for additional investment. However, Chairperson White has reaffirmed the organization’s unwavering commitment to its staff-owned model, addressing widespread criticism of the stake-sale proposal.
John Lewis Partnership remains dedicated to its forward-looking vision as it navigates these transformative times.
