John Lewis has signed a deal to remain as the anchor tenant of the St James Centre in Edinburgh, having previously threatened to pull its flagship out of the scheme.
The St James Centre, which is undergoing a £850m regeneration project, had informed John Lewis that it would have to close part of its store while the works were carried out.
However, John Lewis said the proposals - which would see it lose 53,000 sq ft of retail space during the building phase - would have had an “unacceptably severe” impact on its trading.
The developers have now agreed that the entire store can operate as normal.
It will be refurbished as part of the wider overhaul, which is due to be completed in early 2016.