What: John Lewis is abandoning its plan to achieve 40% of its turnover in non-retail activities.

Why it is important: These diversification plans were a bold experiment from a giant retail company, and could have offered insights on how to pivot a department store model into something news.

John Lewis Partnership has removed its goal of generating 40% of profits from non-retail operations by 2030, focusing instead on its recent return to profitability without a specific target for its housing and financial services ventures. Economic changes since the target's 2020 setting influenced this decision. Despite challenges in property development, the company remains committed to its build-to-rent and financial services for future profitability. With a pre-tax profit of £42m this year, John Lewis is on track for its £400m profit goal by 2027/28, supporting its turnaround with improved cash generation and asset management, ensuring continued co-ownership of the partnership.

John Lewis scraps non-retail plans