It turns out, the remedy for the John Lewis partnership’s post-Covid woes of a few years ago did not lie in seeking outside capital or building 10,000 buy-to-rent flats. Rather, the solution was the old-fashioned one of cutting costs and concentrating on basic shopkeeping.
As it happens, the wild idea of seeking external investors was virtually dead the moment it was loosely aired, such was the uproar among customers and staff about the threat to the 100%-employee owned model. But the home-building adventure did get going until it was ditched by the newish chair, Jason Tarry, a couple of weeks ago. He accepted, in effect, a point that should have been obvious at the outset: if the building assumptions relied on interest rates remaining at near-zero for years, the project would not survive contact with events.
