John Lewis today launched its first foray into the world of investment products, offering customers a suite of three new products aimed at providing simple investment opportunities.
The department store has teamed up with Nutmeg, the UK’s largest digital wealth manager, after customer research indicated its trusted status could help it diversify into other markets.
The new investment products are designed to help those who wouldn’t otherwise consider investing, and are the latest to be introduced to John Lewis’ range of financial services.
They follow the relaunch of John Lewis’ home insurance and retail credit offers earlier this year.
Changing attitudes towards money
A recent survey of 2,000 UK adults revealed that the coronavirus pandemic has had a large impact on the way we think about our money.
It showed that over half of people surveyed said it has made them reassess how they spend and save.
Those continuing to save £1,000 or more has increased by almost 20% – and over two thirds of people now want to spend that money on new and bigger goals like starting their own business or renovating their homes.
One in five people want to move to a bigger house or relocate to the country, more than a quarter are now planning a future dream holiday and over a third want to do some of “life’s big moments” more quickly – including buying a home, getting married or starting a family.
The survey also showed that 72% of people said they would consider investing in stocks and shares rather than just putting their money into a current account.
However, the firm also found that 59% of people said they were put off as they had no idea where to start or it was like a ‘different language’ to them.
Fewer than 10% of those surveyed said they had previously invested their money.
“values we know are important”
A spokesperson for John Lewis said: “We have launched an easy-to-use service to help customers reach their financial targets, no matter how big or small – whether that’s saving to get on the property ladder, helping expectant parents prepare for a new arrival or helping to give someone a financial start in life.
“We have selected three products our customers have told us are most relevant to them, which all invest in funds with high environmental, social, and governance standards so their investments are aligned with the values we know are important to them.”
The high-end brand promised that customers’ money will be focussed on investing in businesses that score highly in the areas of carbon emissions, climate change, renewable energy, social impact and ethical practices.
Customers can start investing from as little as £100 and choose a timeframe and risk level that suits them.
The launch forms part of John Lewis’ plans for 40% of its profits to be made from non-retail activities by 2030.
It follows the recent announcement of its plans for 10,000 rental homes to be built in the next 10 years.
John Lewis says it has committed £100m over the next five years to quadruple its financial services business.