John Lewis will get go forward to be landlord by constructing tons of of flats

The John Lewis Partnership has taken its biggest step yet to becoming a landlord after winning the go-ahead to build hundreds of flats on top of a Waitrose store.

The group, which owns the John Lewis department stores and supermarket Waitrose, will build 353 flats at the site in Bromley, south London.

It has been dabbling in endeavours aside from retail, including financial services and property services.

But critics have urged incoming chairman and ex-Tesco top dog Jason Tarry to focus on its retail basics when he replaces Dame Sharon White in September, and to ditch the property development plans.

Bromley Council approved the £200m development in a 10-5 vote. The proposals include replacing the existing store with three towers, the tallest of which will be 24 storeys.

Bricks and mortar: John Lewis Partnership will build 353 flats in Bromley, south London

Around 30 flats will be defined as ‘affordable’. Katherine Russell, director of build-to-rent at the John Lewis Partnership, said: ‘This gives us the opportunity to enhance the area, create vital housing for the people of Bromley, and a Waitrose.’

The development is connected to a £500m investment deal with Abrdn to build around 1,000 rental homes.

The 160-year-old company wants to build 10,000 homes in 10 years. As part of the plans it also wants to build 428 homes over one of its Waitrose shops in west London.

But it faces an uphill battle for this project. A planning inspector will assess the blueprint after a group of Ealing residents campaigned against the flats.

John Lewis is striving to rebuild staff morale and win back disillusioned shoppers while its rival Marks & Spencer has gone from strength to strength.

In April, chairman Tarry, 57, said: ‘The partnership is unique and I’ve long been an admirer of the employee-ownership model, its values and partner-led customer service.

‘This starts with a sharp focus on being brilliant retailers for customers and investing in growth.’ After a troubled few years, John Lewis Partnership returned to profit in the spring – but did not reintroduce a staff bonus.

The swing in financial fortunes is a boost for White who had said John Lewis would not return to a sustainable profit before the 2028 financial year.

Experts said the main reason behind a profit in 2023 was an aggressive £900m cost-cutting programme rather than a fillip in sales at Waitrose or the company’s department stores.

In its department stores, the retailer has been vying with rivals M&S and Next, who have boosted their array of big fashion names.