In its pursuit of a major cost-saving and fund-building strategy, John Lewis Partnership is understood to be in talks about raising as much as £ 150 million from a sale and leaseback of 12 Waitrose supermarkets.
According to reports, the sibling brand of the department store will start to market the locations next week. The stores, most of which are in the south of England, have 20-year leases with inflation adjustments.
Although insiders told the publication that there was no guarantee a purchase would go through, it is believed that CBRE is serving as the property agent.
The Partnership plans to quadruple its target for cost savings to £ 900 million by January 2026. This month, the Partnership recorded a half-year loss of £ 57.3 million. The company recently announced a two-year delay in finishing its turnaround plan, with chair Sharon White attributing the delay to rising inflation and the cost-of-living crisis.
Another cost-cutting strategy involves drastically reducing the size of the company’s London headquarters and looking for other offices in the city.
The Partnership is also moving into real estate to help it come around. Last year, it established a “Build to Rent” company to build 1,000 homes, with the expectation that by 2030, this will generate 40 per cent of the group’s profits.
In order to obtain at least £ 1 billion for investment, John Lewis Partnership, which controls 329 Waitrose locations in addition to 35 department stores, was also thinking of selling a small portion of the company. White asserted that despite widespread opposition to the concept of selling a stake, the company would stick to its staff-owned approach.
