John Lewis has shelved radical plans to convert almost half the floor space in its Oxford Street flagship into offices after in-store shopping bounced back more strongly than expected after the pandemic.
The department store group won planning permission from Westminster council four years ago for a massive upheaval of the store that could have seen up to three floors of retail trading space, 45% of the total, turned into offices, raising £150 million.
However, John Lewis boss, executive director Peter Ruis, today effectively buried that scheme today as he unveiled a major upgrade of the store at 300 Oxford Street across all six floors as part of an £800 million four year investment programme in the John Lewis brand.
He said: “We all came out of covid thinking we had trained customers to shop online, and it turned out we hadn’t. There has been a philosophical reset across the whole industry as it realised customers have come rushing back to stores, with younger customers coming back the quickest. It is clear that shops are here to stay.”
He added: “I don’t think we have been spending enough on stores, but we’re putting that right.”
John Lewis bosses have also been encouraged by the improving prospects for Oxford Street, which has seen large numbers of new brands take space this year and the number of US candy store reduce.
The changes to the Oxford Street branch - in the 160th year of the business - includes a flagship Jamie Oliver Cookery School and Cafe on the third floor opening in spring next year. The 4,600 sq ft school will have two classrooms hosting over 40 lessons as well as a 50-seat cafe. There will be free cookery lessons for children during the school holidays.
John Lewis has already launched this month an in-store branch of Waterstones on the second floor, marking the bookstore’s return to Oxford street after eight years. Earlier this year saw the opening of a new rooftop restaurant and bar, 1864.
There has also been a major investment in the ground floor beauty hall which is expanding by 25% to have 41 counters and a total of 175 brands, up 15%. Beauty sales are up 7% so far this year with 62% of the total in store..
New brands include The Inkey List, Mac, Skin+Me, Nudestix, and The Ordinary. Fragrance has been given its own dedicated space new brands including Kilian, Parfum de Marly, and Loewe. The fast growing hair care segment is also getting more space with brands such as Dyson, Shark, GHD represented for the first time.
New brands launched in the jewellery department include Dinny Hall, Enamel Copenhagen, Sarah Alexander, Hoxton London and Koijis Vintage Jewellery.
In total John Lewis is spending £6.5 million on Oxford Street and has spent a total of £126 million on stores nationwide this year with £136 planned for 2025. Over four year a total of £800 million is being invested in the brand nationwide, of which as much as half could be in physical stores, Mr Ruis said.
He said: “The buzz is back in John Lewis and we’re giving our customers even more reasons to shop in our brilliant stores. We’re backing ourselves with significant investment to ensure customers get the exceptional quality, outstanding service, and competitive prices they love about our unique brand.”
Under the previous chair, Dame Sharon White John Lewis permanently closed 16 stores in 2020 and 2021 and said it expected 60% to 70% of sales to be made online in the future. However, there has been a rethink since she stepped down in September.
The makeover comes ahead of a long awaited decision from Angela Rayner on whether Marks & Spencer can proceed with plans to knock down its Oxford Street flagship near Marble Arch and replace it with a new shop with a new café, offices and a gym. The ruling is expected in December.
Deputy Mayor for Business and Growth, Howard Dawber said: “John Lewis’ continued investment in Oxford Street and the West End shows that London is a leading location for beauty and fashion retail. The 2025 opening of the new Jamie Oliver Cookery The School and the recent opening of Waterstones will bring an exciting new element to the John Lewis Oxford Street flagship store, improving the shopping and leisure experience for Londoners and tourists alike. This is exactly the kind of investment we like to see as we start the project of regenerating Oxford Street and continue building a better and more prosperous London for everyone.”
