John Lewis could turn vacant department stores into mixed-use affordable housing under radical plans to help turn the business around.
Dame Sharon White, chairman of the John Lewis Partnership, announced the initial results of her strategic review of the mutual in a letter to partners.
"As we re-purpose and potentially reduce our shop estate, we want to put excess space to good social use," Dame Sharon said.
The mutual is exploring plans for new mixed-use affordable housing with third parties.
The update follows a sweeping review of the department store chain and its sister business Waitrose by its new management team, which was launched in March.
The company also said it would expand its presence in financial services, aiming to grow it "significantly over the next five years"; horticulture; and rental products.
The partnership, once seen as one of the strongest performers on the high street, was already facing a serious threat from the rise of online shopping before coronavirus struck.
Dame Sharon indicated that more store closures are likely across both of its brands. Its John Lewis "shops will always be crucial to the brand but they will be in support of online", she wrote, adding that the company will be "more experimental with store formats". There will also be more "catch-up" investments in the John Lewis website to make the retailer "digital first".
It may open new Waitrose shops but will also "potentially [close] others where demand wanes".
Earlier this month John Lewis stunned the retail sector with plans to close eight stores, including two large department stores – one of which, in Birmingham, has only been open for five years.
This week it appointed a new HR boss ahead of what is feared to be a wave of job cuts. Dame Sharon said the mutual was "still targeting at least £100m of savings in head office costs".
Its fanous "Never Knowingly Undersold" price promise remains under review "to ensure we offer fair value for how our customers shop today", the chairman added.
Earlier this year Dame Sharon warned it was unlikely staff would be paid a bonus next year, for the first time since 1953.
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