John Lewis pulls out of housebuilding business
BBC World
February 25, 2026
AI-Generated Deep Dive Summary
John Lewis, a well-known British retailer, is exiting its housebuilding venture after struggling with rising costs and economic challenges. The company, which had aimed to build 1,000 homes across three sites since expanding into residential development in 2020, has decided to abandon these plans. This move comes as part of a strategic shift to focus solely on its retail brands, John Lewis and Waitrose, in an effort to simplify operations and strengthen its financial position.
The retailer cited a "fundamental shift" in economic conditions since it began its foray into property development. Higher borrowing costs, increased construction expenses, and a collapse in housing development activity, particularly in London, have made the venture less viable. John Lewis also revealed that other housebuilders are facing similar challenges, with many struggling to navigate the changing financial landscape.
In addition to halting its housebuilding plans, John Lewis is winding down its property management business. The company will complete its existing contracts for four residential buildings in Leeds, Birmingham, Leicester, and Stratford before fully withdrawing from this sector. However, the day-to-day operations of Waitrose shops in Bromley and Ealing, as well as the Reading site, which is likely to be sold, will continue as usual.
This decision reflects broader economic trends affecting businesses worldwide,
Verticals
worldpolitics
Originally published on BBC World on 2/25/2026