The UK's John Lewis Partnership is exiting its build-to-rent (BTR) business, citing a “fundamental shift” in economic conditions since the initiative began in 2020.

According to a report on Reuters, the employee-owned retailer, which operates the John Lewis department stores and Waitrose supermarkets, said the withdrawal aligns with executive chair Jason Tarry’s strategy to focus on core retail operations.

The partnership’s move into the BTR market was launched under former chair Sharon White as part of a diversification push.

No homes were ultimately built, but the company said it was “proud” of the progress made.

It highlighted the advancement of three planning applications for around 1,000 homes and the supervision of third-party BTR properties at four locations.

The decision comes as the group channels investment into its John Lewis and Waitrose shops, e-commerce capabilities and supply chain.

Full-year results are due next month.

Earlier this month, the partnership announced a £108m ($145.9m) investment in employee pay, lifting hourly shop-floor wages by 6.9% from 1 April across both banners.

The increase follows nearly £300m added to the pay budget over the past three years, with close to 90% of the £108m uplift classified as discretionary spending above the UK’s National Minimum Wage.

In October 2025, John Lewis said a “new cutting-edge” supplier platform would enable customers to buy from a broader selection of curated fashion labels more quickly.

The addition of Russell & Bromley to the system was described as a “significant evolution” in the retailer’s supplier relationships, aimed at improving agility in sourcing in-demand brands.

The platform is powered by tech company Mirakl, with new brands being able to be added both online and via its app.