Last updated 28th December 2022
John Lewis Partnership
John Lewis Partnership is one of the UK’s best-known retail groups with a significant property estate that includes 34 John Lewis department-style stores along with 332 Waitrose supermarkets across the country.
Founded over 100 years ago by John Spedan Lewis, the group operates through a business partnership model with its near-80,000 employees seen as partners who are ‘custodians’ of an experiment in industrial democracy. Meanwhile, total trading sales at Waitrose in the year to January 2022 were worth some £7.54 billion and at John Lewis, £4.93 billion and the group employs 79,500 staff (21,200 at John Lewis and 55,800 at Waitrose).
JLP’s significance as a client for the construction industry increased dramatically in late 2022 when it unveiled plans to expand in the build-to-rent property sector through a £500m joint venture with abrdn, an investment group. The jv initially aims to deliver around 1,000 new homes across three areas (see opertions, below) and has an ultimate goal to build 10,000 new homes over the next decade.
The group is also significant investor in its existing retail estate. During the current financial year (ending January 2023), the partnership is undertaking a £119 million investment in its John Lewis shops, digital services and distribution network.
Meanwhile, the Waitrose upmarket grocery chain is currently investing £55 million to complete major refurbishments of 23 stores and a further £72 million in its digital services and distribution operations. As part of its convenience offer, 13 new Waitrose shops have recently opened at Shell locations – giving it 69 sites in total – and over 2022/23 it has started rolling out electric vehicle charging points at Waitrose stores.
In common with most retailers, JLP has been hard-hit by the growth of online shopping; after closing eight John Lewis stores in 2020, it closed a further eight in 2021 along with a customer delivery hub and undertook a management reorganisation. To bolster its brands, it launched a five-year, self-funding partnership plan in autumn 2020.
Financials
To see the financials for John Lewis Partnership plc go to Companies House and use company ID 00238937.
JLP produced significantly-better results in the year to January 2022 as Covid faded although the group remained in the red. On revenues of £10.84 billion (up from £10.77 billion previously), the partnership reported a profit before partnership bonus, tax and exceptionals of £180.5 million, up 38% on the previous year and helped by cost-cutting. But the loss before tax stood at £26.7 million, compared to £517.2 million previously. However cash & equivalents stood at £1.415 billion, compared to £1.518 billion and total equity stood at £2.75 billion. Results for the first half of 2022/23 showed a loss before tax and exceptionals of £92 million as inflation and Covid took their toll but cost savings of £90 million.
Operations
The first homes planned under JLP’s new build-to-rent jv with abrdn will involve schemes in Greater London, at Bromley and West Ealing, and in Reading. The long-term scheme will take advantage of potential sites around JLP and Waitrose stores and will involve the partnership developing and managing the proposed new homes (including some affordable units), which will be rented complete with John Lewis furnishings.
One other recent initiative at the group has seen Waitrose convenience stores opening in more more than 50 outlets of Dobbies, a garden centre retailer, across 20 towns and cities. The group is also creating a further 49 John Lewis dedicated spaces within Waitrose stores and a new John Lewis format is launching early in 2023.
Glenigan data
Glenigan data highlights numerous refurbishment projects across JLP, particularly of Waitrose supermarket stores. At a site in Saltway, Droitwich in Hereford & Worcester, work is set to start in spring 2023 on a £2 million supermarket refurb for Waitrose where Princebuild is the main contractor and work is expect to run for three months (Project ID: 22193959). Meanwhile, Glenigan data also provides background details on the first 1,000 properties to be built under JLP’s build-to-rent initiative at Masons Hill in Bromley, where work is set to start in late summer 2024 (Project ID: 22441215).
Conclusion: still a significant provider of work for the industry
The opportunities for work on John Lewis department stores may not be as promising as they once were but the JLP partnership still provides a significant source of work for the industry. Given the level of competition in the grocery sector, the need to refurbish and maintain the 300-plus Waitrose stores across the country will provide ongoing work for many medium-sized firms. Meanwhile, the partnership’s big ambitions in the build-to-let sector, offers huge potential for the sector; the first schemes identified at Bromley and West Ealing alone are set to generate work worth £900 million over the next decade.
How to win work with John Lewis Partnership
A suppliers portal at https://www.jlpsuppliers.com/ gives full details of the group’s approach to its supply chain for both John Lewis and Waitrose and has an email address for enquiries.
Key contacts
Chris Harris, Property & Development Director, John Lewis and Waitrose
Telephone: 0345 610 0370
Nina Bhatia, Executive Director, Strategy & Commercial Development
Telephone: 0345 610 0370