John Lewis considers offloading 12 Waitrose stores for £150m
Bloomberg stated that John Lewis has recently been hit by high inflation and weak online sales
John Lewis Partnership Plc is reportedly planning to sell 12 Waitrose supermarkets for as much as £150m in a bid to raise more capital, according to Bloomberg.
Some people familiar with the matter told Bloomberg that CBRE has been appointed as agent for the partnership and the marketing of the stores will begin next week and mostly includes supermarkets in the south of England with 20-year inflation-linked leases.
However, they added that there’s no certainty a deal will take place.
Bloomberg stated that John Lewis has recently been hit by high inflation and weak online sales. As a result the business has pushed back a “crucial” turnaround plan by two years.
Earlier this month, the partnership also reported a H1 loss of £56m, and attributed it to difficult market conditions and inflation which had “hit like a hurricane.”
In March, the partnership was reportedly planning to raise at least £1bn through a minority stake sale, but the proposal faced pushback from staff at the employee-owned business.
Bloomberg reported that the company has fewer options for raising capital, but a sale and leaseback allows the retailer to monetize parts of its valuable store estate.
If the sale of any stores goes through, it could likely go toward overhauling and improving the look of Waitrose stores to better compete for customers during Britain’s cost-of-living crisis.
