John Lewis has become something of a powerhouse in British retailing, with the department store chain consistently achieving record results even at the height of recession. With both department stores and the group’s supermarket chain Waitrose going from strength to strength, bolstered by the improvements in the economy, it appears that this trend is set to continue for some time.
It will come as no surprise, then, to learn that the John Lewis Partnership is now looking to grow its store portfolio substantially over the next few years. At present, 39 John Lewis department stores are operational across the UK, but the board of directors have voiced hopes that this will increase to 60 or above in the not too distant future.
In fact, this plan appears to already be set in motion, as John Lewis is close to agreeing a deal with Westfield and Hammerson – the developers behind a project which is believed to be the “biggest urban retail development in Europe.”
The Westfield Shopping Centre, located in Croydon, recently gained outline planning permission for an ambitious £1 billion scheme which will see an extension added to the existing retail development. This extension is expected to comprise of 550,000 square feet of retail space, along with 1,500 homes and additional space for restaurants and offices.
Westfield and Hammerson are believed to be seeking a department store to anchor this exciting new project, which is where John Lewis comes in. Should the department store group agree to the move at its board meeting next month, the site in Croydon will become the fourth John Lewis store in London, with other locations being Oxford Street, Brent Cross and Stratford City centre by the Olympic Park.
Should terms be agreed, the Westfield outlet will become the latest in a string of developments currently being undertaken by John Lewis. Stores in both Birmingham and York are in the process of being prepared for business, while industry experts believe sites in Manchester and Guildford are in the early stages of planning.
However, John Lewis remains tight-lipped about its future expansions, perhaps in an attempt to remain ahead of rivals in the property portfolio stakes.
A spokesman said; “John Lewis is always looking at new opportunities for expansion and growth however, we don’t comment on market speculation.”
While this may not answer many questions, there is no doubt that the group is well-placed to expand its store network financially. Recent figures show that in-store sales have grown by 7.6 per cent, and online sales by 20 per cent, compared to the same period last year; a factor largely driven by a boom in its electronics sector.
Furthermore, sales in the first half of 2013 grew by 6.6 per cent, although more details will be forthcoming in the group’s half-year results report due to be published next month.
With demand growing among consumers seeking quality luxury items as the economy improves, it seems almost certain that John Lewis will be seeking to infiltrate new areas of the retail market. However, the question is whether it will take advantage of availability on the high street or turn to out of town retail parks in order to achieve its expansion aims.
Do you think John Lewis’ wish to almost double its store portfolio is too ambitious, or is it merited by high consumer demand?
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