Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

John Lewis seeks landlord discounts

John Lewis is reportedly seeking discounts from landlords, as it seeks to cut further costs from across the business.

The retailer has told landlords in some areas that it will withhold 20% of service charges for this quarter, documents seen by the BBC indicate.

John Lewis said the charges, which are paid on top of rent and cover services such as heating and security, are too high and asked landlords to help cut costs. The proposed discounts would reduce charges for the final “golden” quarter of 2019.

In a statement, the retailer told the BBC that service charges in shopping centres had risen particularly steeply in recent years. It also criticised landlords for not doing enough work with the retailer to reduce these increases.

However, John Lewis is under contract to meet service charge obligations, and failing to do so could lead to conflicts with property owners.

This request comes following a week of significant change for the retailer, which announced that John Lewis & Partners and Waitrose & Partners will act as a single business. This will result in a third of senior management roles being axed.

Readers' comments (1)

  • JLP have no legal right to withhold service charge payment. Disgraceful way for them to behave.

    Could this be the first move towards a CVA?

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.