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LONDON, July 30 (Reuters) - The John Lewis Partnership,
owner of Britain's leading department store chain, has said it
must diversify beyond retail to survive the turmoil on the high
street and plans to expand into financial services, gardening,
housing and rental options.
The coronavirus pandemic has destroyed many retail
businesses that were already struggling with high rents and the
shift online, leaving gaping holes on the country's main
shopping streets and threatening thousands of jobs.
The Partnership, which owns the John Lewis department store
chain and the upmarket supermarket Waitrose, said it hoped its
plan would help profits to recover over the next three to five
years.
"As you all know, these are testing times, with profits this
year and next likely to be challenged," Chairman Sharon White
said in a letter to staff, known as partners. "The beauty of
being a Partnership is that we are able to take a long-term
view."
Known as middle England's favourite department store, John
Lewis had already said it could cut 1,300 jobs.
In an outline of her new strategy, White said retail profit
margins were under pressure and for the Partnership to be
"sustainable over the long-term", it needed to expand beyond its
traditional role.
It wants to grow significantly its financial services arm
which offers credit cards, insurance and personal loans, and
expand further into horticulture with possible partnerships on
landscaping.
As the group looks at potentially repurposing its shop
estate, it could work with third parties to produce affordable
housing, and it is also looking to rent out products or build a
marketplace to sell used products.
The scale of the plans show how retailers in Britain are
having to rethink the way they do business. For John Lewis, it
expects to become a 60% online retailer, from 40% before the
pandemic, showing how quickly companies are having to adapt.
Marks & Spencer, health and beauty chain Boots
and the upmarket department store Selfridges are cutting
thousands of jobs between them.
(Reporting by Kate Holton. Editing by Jane Merriman)
