Department store John Lewis has struck a £500m deal with investment giant Abrdn to build residential homes, the retailer announced on Friday (December 2).
The high street stalwart has teamed up with Abrdn - formerly known as Standard Life Aberdeen - to build the first 1,000 of the 10,000 homes it plans to construct on the sites of old shops and warehouses.
The company said the deal would allow it to build on the sites of two former Waitrose shops in Bromley and West Ealing in Greater London, as well as a vacant John Lewis warehouse in Mill Lane. It is part of the retailer's plan to make money from more different areas and reuse old retail sites that are no longer viable for the business.
The company will build the homes, kit them out with John Lewis furniture, then rent them out.
John Lewis first announced its plans, which it says will help the UK's housing crisis, in 2021. The retailer said at the time around 7,000 of the homes would be built on sites in existing portfolio, while the remainder will be on new sites.
The announcement comes as the retail industry continues to face difficult trading conditions, despite the festive season usually being the busiest time of year. The squeeze on household incomes, caused by the cost-of-living crisis, has had a direct impact on the sector, which has seen dozens of high street shops collapse into administration in 2022.
On Friday, the British Retail Consortium (BRC) said footfall on high streets declined by 13.6% in November - 2.0 percentage points worse than last month's rate - and worse than the three-month average decline of 12.3%.
“Rising inflation and low consumer confidence continue to dampen spending expectations in the run up to Christmas," said Helen Dickinson, chief executive of the BRC.
"Despite retailers doing their best to keep prices as low as possible for their customers, financial concerns are trumping spending for many households. But, with three more weeks to Christmas, retailers hope that the festive spirit may still give a welcome boost to both footfall and retail sales.”
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