You are here: Home - Saving & Banking - News -

John Lewis to launch savings accounts and enter ‘build to rent’ housing market

0
Written by:
16/10/2020
John Lewis said it plans to offer savings products while it also announced it is entering the ‘build to rent’ housing market as it sets out bold plans to reach more customers and grow future profit.

The retailer said it is “already successful” in the financial services sector with the John Lewis Partnership card being “the UK’s biggest retail credit card”.

But it announced it is committing £100m over five years to quadruple the business as it looks to offer new products and services such as savings and insurance “where trust really matters for customers”.

Meanwhile, it has identified 20 sites it owns which could be used to benefit local communities by providing quality and sustainable housing, while providing a stable income.

It aims to submit planning applications in the new year for two of the sites in greater London.

By entering the ‘build to rent’ housing market, the John Lewis Partnership plc will also be able to furnish the properties using its home products and deliver Waitrose food.

“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”, it stated.

The move comes as John Lewis announces plans to reach £400m profit by year five; to expand its digital, virtual and delivery services; pledges to recruit young people coming out of the care system and commits to cutting waste and becoming net zero carbon by 2035.

As such, it said it will grow Waitrose delivery capacity beyond 250,000 per week (up from 55,000 pre-pandemic) and an additional 25 Waitrose shops will join five other stores in the Deliveroo trial to deliver shopping in 30 minutes.

It added that when profit reaches over £200m, it will pay staff the voluntary Real Living Wage and aims to pay a bonus when profits exceed £150m and its debt ration falls below four times.

Last month, John Lewis confirmed it will scrap next year’s bonus for staff – the first time since 1953 – after posting pre-tax losses of £635m.

‘Thrive for the next century’

Sharon White, chairman of the John Lewis Partnership who is also a non-executive director at Barratt Developments plc, said: “We’ve seen five years of change in the past five months and Waitrose and John Lewis have responded with great agility. Our plan means the John Lewis Partnership will thrive for the next century, as it has the last.

“We’re adapting successfully to how customers want to shop today, while showing the Partnership is improving lives and building a more sustainable future. We’ll share our success with our customers, Partners – who own the business – and our communities.”

Nina Bhatia, executive director of strategy and commercial development at the John Lewis Partnership, said: “This is a bold plan to grow our business and get us much closer to our customers. Waitrose and John Lewis are two of the country’s most trusted brands and we’ll offer the best products and customer service on the high street and online.

“We’re creating new inspirational services for customers where strong ethical values and peace of mind matter, like reusing and recycling products, personal savings and rented housing. Our plans will firmly establish Waitrose and John Lewis as the go-to brands for customers that care about quality, value, and sustainability.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
BLOG: Four funds that are as active as active gets

It seems that as each day passes, the chance of a second national lockdown look more and more likely. But...

Close