John Lewis has been given the green light to revamp a significant portion of its historic flagship store located on Oxford Street in London. This major decision is seen as a crucial step in the retail giant’s efforts to adapt to evolving consumer habits and regain profitability in a sustainable manner. With the shift towards online shopping impacting foot traffic in physical stores, John Lewis is rethinking its strategy to ensure its continued success in the digital age.
The approval for the conversion of office space was granted by the Westminster City Council, citing special circumstances that necessitate the reduction of retail area. According to real estate consultancy Altus Group, the overall open-market rental value of the store is estimated to be an impressive £19.91 million, solidifying its status as one of the most valuable properties in the country.
The forthcoming transformation will see the upper levels of the store, representing 45% of the total floor space, repurposed to accommodate both office and retail operations. On the other hand, the lower floors will continue to house essential departments such as beauty, fashion, and home goods. The sections slated for conversion presently feature products like kitchenware, electronics, and children’s toys.
Despite these alterations, John Lewis is dedicated to maintaining a significant presence on Oxford Street, underscoring its ongoing commitment to physical retail. The council’s granting of planning permission highlights the necessity for retailers to adapt to the current economic climate while investing in the long-term viability of their brick-and-mortar establishments.
This move by John Lewis coincides with similar strategic shifts by other retailers looking to maximize their spaces effectively. Debenhams, another key player on Oxford Street, recently obtained approval to convert a segment of its store into offices. There have been murmurs that Debenhams might consider vacating its flagship site, which is presently owned by businessman Stefan Persson.
Should Debenhams pursue an office conversion, it could still retain a retail presence in the area. Speculation suggests that Frasers’ head, Mike Ashley, who oversees the neighboring House of Fraser flagship, might express interest in acquiring the space. This trend reflects a larger industry movement towards innovative property utilization in response to changing market dynamics.
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Insider.co.uk
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