John Lewis plans to build 10,000 new homes in car parks and above supermarkets
John Lewis gets set to become a landlord with plans to build 10,000 new homes in car parks and above Waitrose supermarkets – complete with furniture from the department store
- Retailer John Lewis is reportedly branching out into property development
- Believed to have devised plans to build 10,000 homes in the next ten years
- Will be built on existing John Lewis, Waitrose and distribution centre sites
- Range from studios to four-bedroom homes and come with concierge service
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Retailer John Lewis is planning to become a landlord with plans to build 10,000 new homes in car parks and above Waitrose supermarkets in the next ten years.
The company has reportedly already found space for 7,000 rental homes, with the view to submit planning applications at the beginning on 2022.
Those who rent a property from John Lewis, which will act as a residential landlord, will be given the option to have it furnished with company products or to do it themselves.
Retailer John Lewis is planning to branch out into property development with plans to build 10,000 homes in the next ten years. Picture: File image
If given the go ahead the plans would see new homes built in John Lewis car parks, above existing Waitrose supermarkets and near distribution centres. Picture: File image
According to The Sunday Times, the company, which is owned by its employees, plans to begin developing in the southeast of England first before potentially spreading further afield.
Properties on the sites will reportedly come in various sizes, from studios to four-bed homes, and will have a concierge service and potentially a small Waitrose store.
In addition, it is suggested there are plans to offer company employees, of which there are more than 80,000, reduced rent.
There are suggestions the homes could be built on top of existing John Lewis owned properties, including Waitrose stores and department stores, within car parks, as well as near distribution centres.
Those who rent a property from John Lewis, which will act as a residential landlord, will be given the option to have it furnished with company products (pictured) or to do it themselves
John Lewis already has several properties in its portfolio, including several homes in the village of Leckford in Hampshire (pictured)
John Lewis has 34 department stores across the country, seven warehouses and a further 331 Waitrose stores which could be potential sites of interest.
The company has already dipped its toes in the housing market, owning the majority of the village of Leckford, Hampshire.
It is believed the plans for the new property portfolio will follow a similar scheme adopted on the estate, where every home owned by the company has a green door.
MailOnline approached John Lewis for comment on the property development plans.
The homes owned by John Lewis and rented out to tenants are all painted in distinctive green paint (pictured)
Various properties in the small village, in which John Lewis owns the large Leckford Estate, have green doors and window frames (pictured)
The move comes as John Lewis was forced to shut eight more stores across the country, putting 1,465 jobs at risk, in March.
The retail giant told staff that it planned to close the branches after the winter Covid lockdown measures lifted, as it undergoes a major shift in strategy to adapt to changing shopping habits.
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As part of its new investment plan, the John Lewis group has said it is pushing forward with plans to expand into housing.
Bosses of the group say they have identified 20 potential sites which could be used for private houses to rent.
The company said the new homes could be built on new land it acquires, above or beside John Lewis or Waitrose stores, or on other land it owns.
As well as some freehold stores, the group owns a 2,800-acre farm in Hertfordshire, another farm in Leckford, Hampshire, four hotels and various logistics facilities.
On the Leckford site, John Lewis already has 90 homes, which are rented at a subsidised price to workers on the farm.
On the Leckford site (pictured), John Lewis already has 90 homes, which are rented at a subsidised price to workers on the farm.
It also has 14 flats in the Channel Islands, in Jersey, and 50 flats on the site of its Welwyn Garden City John Lewis store.
The group would not reveal the locations of 18 of the 20 targeted sites, saying it was ‘still early doors’ for the proposals.
However they are preparing to lodge planning applications for two sites in Greater London in the new year, according to reports.
A company spokesperson told the Guardian: ‘We’re a landlord already at three of our properties, so this is an obvious extension for us.
‘And we’re now talking to developers and investors who can help us achieve our ambitions.’
The eight shops included four department stores in Aberdeen, Peterborough, Sheffield and York, and four At Home stores in Ashford, Basingstoke, Chester and Tunbridge Wells.
In January the group recorded a £517million pre-tax loss for the year – the first ever loss in its 157-year history.
Last July it also announced the closure of eight stores, including its flagship site in Grand Central, Birmingham.
For the first time in nearly 70 years, partners were not offered bonuses as the Covid-19 lockdown put added pressure on the high street retailer.
It decided not to reopen eight stores after the first lockdown, at a loss of around 1,300 jobs.
But after several blows to the business as a result of the pandemic, the company is believed to be taking advantage of the housing market boom and taking the company in another direction.
Instead it will make the most of the ‘build to rent’ sector – new build properties that have been designed for the specific purpose of renting.
They often come with a range of perks, including on-site managers, communal areas and green spaces but also come with a hefty price tag.
John Lewis’ property director Chris Harris told The Sunday Times: ‘Typically a developer might try and maximise returns and then move onto the next one. We are not trying to do that. We are aiming to charge a fair rent and to stay for the long haul.’
In October last year it was revealed the company had developed plans to become a major housing landlord.
The John Lewis Partnership said it wanted to streamline its head office and operations, but expand into the property market, as part of a new five year growth strategy.
Bosses aim to triple the company’s annual savings from £100million to £300million each year by 2022 – a move which they hope, combined with growth, will push profits to £400million by 2025.
Alongside planned cuts, the group also announced a number of investment plans, including proposals to expand into the property business – an idea already explored by furniture giant IKEA.
The company said it was pushing forward with plans to expand into housing, highlighting that it has identified 20 potential sites which could be used for private housing.
The sites were not made public, however, speaking at the time, the company said the new homes could be built above or beside stores or on other land it owns.
As well as some freehold stores, it owns a 2,800-acre farm in Hertfordshire, another farm in Leckford, Hampshire, four hotels and various logistics facilities.
Under the plans, the homes would be furnished with products from John Lewis department stores.
The group already has three sites and is aiming to make planning applications for two sites in Greater London in the new year, according to reports.
