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John Lewis Sued by Brent Cross Over Click-and-Collect Rent Dispute

Financial Times Companies •
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John Lewis is facing a High Court battle with the owners of Brent Cross shopping centre over whether online click-and-collect sales should contribute to rent payments. Property giants Hammerson and Standard Life Investments (now part of Aberdeen) are suing the retailer, arguing that digital orders collected at the north London store should be included in turnover rent calculations despite the lease being signed decades before ecommerce existed.

The dispute centres on a 1979 lease provision requiring John Lewis to pay additional rent when store takings exceed certain thresholds. The retailer currently pays a base rent of £30,000 annually, plus 0.75% of turnover above £4mn and 1% above £10mn. The landlords argue the contract's reference to "Mail, telephone or similar orders" covers online sales, and are seeking backdated payments.

The case could reshape how landlords and retailers negotiate turnover rent agreements as ecommerce continues to reshape shopping habits. John Lewis argues the transaction is complete when products leave its distribution centre, not when customers collect them. The retailer has been an anchor tenant at Brent Cross since it opened in 1976.