John Lewis Partnership has announced a £1bn overhaul plan to make the department store online-focused and reach £400mln annual profits by 2025.
The high street mainstay aims to make 60-70% of sales online in the next five years, compared to around 40% before the coronavirus pandemic hit.
READ: Market speculates on future of high street ahead of John Lewis Partnership’s strategic update
Alongside the expansion of the ‘click and collect’ service, the partnership is also developing collaborations with online furniture rental business Fat Llama and with Deliveroo for Waitrose products.
Around £100mln will be invested in the retail credit card business to grow it four-fold by offering new products and services like savings and insurance.
Looking at the store estate, 20 shops will be turned into housing, with the aim of providing the group a continuous income from rents, while there will also be a focus on garden centres through potential new collaborations.
The 'Never Knowingly Undersold' price promise remains in place until next year, when the employee-owned business will unveil a new value pledge.
“We've seen five years of change in the past five months and Waitrose and John Lewis have responded with great agility…We're adapting successfully to how customers want to shop today, while showing the Partnership is improving lives and building a more sustainable future,” said chairman Sharon White in a statement.