John Lewis pulls out of housebuilding business

---

John Lewis has decided to exit its housebuilding venture, abandoning plans to construct 1,000 homes across three different locations. The decision comes in response to increased borrowing and construction costs that have risen significantly since the company first entered the residential development market in 2020.

In addition to halting its building projects, John Lewis is also stepping away from property management. The company will close this segment once its current contracts for managing four residential buildings come to an end. These properties are located in Leeds, Birmingham, Leicester, and Stratford, where management will continue until a smooth transition is completed.

The employee-owned retailer explained that it will now prioritize strengthening its core retail operations, focusing exclusively on its well-known brands John Lewis and Waitrose. This shift is intended to simplify the business structure and improve its financial position. John Lewis noted that its initial ambitions in the housing market were shaped by financial factors that no longer apply, saying, “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.”

The company also highlighted that other builders are facing similar challenges, with housing development experiencing a significant downturn, particularly in London. Meanwhile, John Lewis continues to navigate difficulties in its retail segment, including job cuts and store closures driven by the growing prevalence of online shopping. Although plans to build above existing Waitrose stores in Bromley and Ealing, as well as on a former industrial site in Reading, had been approved, these developments will no longer proceed. The Waitrose stores will remain open, and the Reading site is expected to be sold

Read the full article from The BBC here: Read More

---