The announcement that John Lewis is considering a move into mixed use affordable rental housing might sound puzzling but could make good business sense. Retail businesses are increasingly needing to think imaginatively over the ways they can adapt or repurpose their real estate. As we know, there is considerable demand and need for an affordable high quality rental product, particularly in London and the south east. Diversifying product and service lines helps spread risk across a business and is something businesses often try to do during downturns. However, many are unable to do so because they are insufficiently agile to pivot or diversify in this way. A move into affordable rental housing would offer a tangible wider social benefit as well as it being in line with John Lewis’ core values of ‘do right’ and ‘give more than you take’. It would be a change wholly in keeping with its core ethos and purpose.

The most successful and enduring businesses have a purpose which resonates beyond simply making increased profit year on year or being the 'best in class'. If John Lewis proceeds with the idea, then this may well give it the impetus to thrive in a more challenging economic environment as well as providing it with a steady source of long term revenue. As the Prime Minister, Boris Johnson, has said, the COVID crisis can provide an opportunity for businesses to ‘build back better’. To do this, businesses will need to re-energise or perhaps create for the first time a purpose which resonates beyond their employees to their customers and society more generally.