London landlord sues John Lewis in click-and-collect dispute

Member News
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Apr 2026
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Financial Times

What: London’s Brent Cross landlord is suing John Lewis over whether click-and-collect sales should be included in turnover rent calculations under a decades-old lease.

Why it is important: This case could set a precedent for how online and click-and-collect sales are treated in retail property agreements across the UK.

The ongoing legal battle between John Lewis and the landlord of Brent Cross shopping centre centres on whether click-and-collect sales should be counted towards turnover rent, a provision in a lease signed in 1979—long before the advent of ecommerce. The property owners, Hammerson and Standard Life Investments, argue that the lease’s language about “mail, telephone or similar orders” should encompass modern click-and-collect transactions, including associated collection charges. John Lewis, however, maintains that online sales are exempt, as the transaction is completed at its distribution centre, not in-store. This dispute reflects the broader challenges faced by retailers and landlords in interpreting legacy agreements amid the rapid evolution of omnichannel retail. The outcome could have significant implications for how turnover rents are calculated industry-wide, especially as retailers increasingly rely on online and hybrid sales models to drive revenue. The case also underscores the financial pressures on department stores and the strategic importance of adapting both legal frameworks and business models to the realities of contemporary retail.

IADS Notes: The legal dispute between John Lewis and the Brent Cross landlord over click-and-collect turnover rent calculations, reported in April 2026 (Financial Times), exemplifies the growing tension between legacy lease agreements and the realities of modern omnichannel retail. This case unfolds as John Lewis, in February 2026 (Drapers), abandoned its rental home diversification to refocus on core retail investment amid rising costs and market volatility. The broader retail environment is also under pressure, with department stores hit hardest by regulatory changes such as increased business rates in September 2025 (The Industry), threatening their viability as high street anchors. Despite these challenges, John Lewis continues to demonstrate the enduring relevance of the department store model through operational excellence and customer-centric innovation, as noted in August 2025 (Retail Week). The company’s approval for the Reading mixed-use development in October 2025 (Retail Week) further illustrates its commitment to asset diversification and urban regeneration, reflecting a sector-wide trend of integrating retail with residential and community spaces to adapt to evolving consumer and landlord expectations.

London landlord sues John Lewis in click-and-collect dispute