The John Lewis Partnership has revealed its new five-year Partnership Plan, which sets a target of reaching £400 million in profit by its final year. The plan places a strong emphasis on digital, virtual, and delivery services in order to better connect with customers. It also involves the development of new services and partnerships to expand the business beyond retail. The company is committed to making a positive impact, with initiatives such as recruiting young people from the care system and making significant commitments to reducing waste and achieving net zero carbon.

In order to accelerate its online business and transform its stores, John Lewis is planning to invest £1 billion over the next five years. The aim is to modernize its stores and make the most efficient use of space. However, the company acknowledges that relying solely on retail will not be enough to sustain its growth. As a result, it plans to allocate a total of £400 million to venture into new areas that meet customer needs and generate reliable revenue streams. By 2030, John Lewis hopes to generate 40% of its profits from these new business areas.

The funding for this expansion will be partly supported by cost savings of £300 million per year by 2022. The company intends to streamline its operations and head offices to achieve greater efficiency. This strategic shift comes at a crucial time for the company, as it has been experiencing declining profits and sales in the midst of a rapidly changing UK retail landscape.

The objective of the new strategy is for John Lewis and Waitrose to become the leading brands for customers seeking quality, value, and sustainability. As the largest employee-owned business in the UK, John Lewis is in a unique position to take a long-term view of the evolving retail industry, which may not be possible for other publicly listed or privately owned companies. The five-year plan is self-funding and takes into account the unpredictable nature of trading conditions.

Recognizing the changing preferences of consumers, John Lewis aims to expand its reach beyond traditional retail. The company is positioning itself as a Partnership for positive change, focusing on improving lives and building a more sustainable future. It plans to venture into areas such as rental, recycling, savings, insurance, private rented housing, and social housing, where it can deliver real value to customers.

However, retail remains a core focus for the company, and it intends to strengthen the collaboration between its John Lewis and Waitrose operations. This will involve offering products from each brand in the other’s stores and online. In its stores, John Lewis will prioritize affordability by introducing more affordable price points in its product ranges. Expanding its online presence is also crucial, with John Lewis aiming to become a 60-70% online retailer by 2025. The company plans to enhance its digital services, such as personal styling and home design consultations, to create a seamless customer experience.

In line with its commitment to sustainability, John Lewis has set ambitious targets. It aims to achieve net zero carbon by 2035, 15 years ahead of its original target. Additionally, the company will focus on promoting products with longer lifespans that can be enjoyed for longer. By 2025, all product categories will have a buy-back or take-back solution, and key raw materials in own-brand products will be sourced sustainably or from recycled materials. The company is also exploring rental and resale options for customers.

In terms of social responsibility, John Lewis plans to pay its Partners the voluntary Real Living Wage once it surpasses £200 million in profit. The company believes that its move into housing can contribute to its profit growth. It has identified 20 sites that it already owns, which could be used for quality and sustainable housing to benefit local communities while generating a stable income for the Partnership. The company intends to submit planning applications for two of these sites in Greater London early next year. Additionally, John Lewis plans to enter the build-to-rent market, allowing it to furnish properties with John Lewis Home products and deliver Waitrose food.

With a continued focus on retail operations, John Lewis is exploring opportunities to collaborate with developers and investors to achieve its ambitious goals. The company aims to adapt to changing consumer behavior and remain a trusted and valued brand for years to come.

To learn more about John Lewis’ new Partnership Plan, please visit the company’s official website: [John Lewis Partnership website](https://www.johnlewispartnership.co.uk/).
For information on the latest updates and news from John Lewis, you can check out the company’s press releases section: [John Lewis Press Releases](https://www.johnlewispresscentre.com/).