By The challenges facing John Lewis are huge. The group’s large physical estate means a structural decline in footfall is a problem.
The group’s higher price-point also places it in danger during the cost-of-living crisis, and demand patterns are likely to dip further as recession deepens.
In response to the need to diversify its income streams, John Lewis has said it plans to build 1,000 rental properties, including at one of its warehouse sites.
The group has some enviable plots in its repertoire, with their central locations likely to make them attractive to renters.
Grasping the nettle is an admirable move and rent collection should be a stable source of income, but the fact it has come to this speaks volumes.
The onus being put on these properties will depend just how merry John Lewis’ festive trading period is.
Britain’s third largest cinema chain, Vue, is ready to pounce on acquisition opportunities, which could include elements of struggling peer Cineworld – as speculation mounts it could be broken up.
Trips to the cinema plummeted throughout the pandemic and are unlikely to fully recover by some estimates, as people realise the cost and convenience benefits of streaming hits from home for less money – or even for free.
It’s only recently that Vue went through a protracted and painful £1bn restructuring, so this brazen M&A attitude may not sit well with its rescuers.
Vue’s aspirations are certainly heady and include a potential stock market flotation within the next couple of years.
Diversifying and expanding its footprint through Cineworld’s assets is a way to make the group’s portfolio more attractive to potential investors.
As and when a listing occurs, the market will certainly need some convincing that Vue has the strength and stamina to excel over the long-term after the systemic changes that have occurred in entertainment.
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