British retailer John Lewis has partnered with digital wealth manager Nutmeg to offer investment products.
The move comes as the chain, known for John Lewis department stores and upmarket supermarket Waitrose, looks to reverse the impact of the Covid-19 pandemic on its business.
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The company will roll out three new products, namely, Junior ISA, Stocks and shares ISA, and General Investment, for ‘those who otherwise would not consider investing’.
Junior ISA is a tax-free investment with a yearly allowance of £9,000.
Parents, guardians and grandparents can make regular contributions to a Junior ISA for children below 16 years of age. Only the child can access Junior ISA when they turn 18.
Stocks and shares ISA allows customers to invest without any tax on their returns on a £20,000 yearly allowance.
Customers can invest in a general investment account if they have used up their £20,000 ISA allowance for the year.
John Lewis aims to obtain 40% of its profits from outside retail by 2030. The firm has committed £100m over the next five years to quadruple its financial services business.
John Lewis Financial Services director Amir Goshtai said: “Our products allow people to put money aside and to take that first step into what is often perceived as the complicated world of investments.
“This is where the trust and love that customers have for our brand combined with Nutmeg’s expertise can make a difference, while making John Lewis even more relevant for life’s big moments; whether that’s saving for a home or preparing for the arrival of a new baby.”
According to the firm’s survey participated by 2,000 UK adults, 72% consider investing in stocks and shares compared to keeping their money in a current account.
Besides, 59% of those surveyed had no idea where to start or it was like a ‘different language’ to them while fewer than 10% said they already invested.
Nutmeg CEO Neil Alexander commented: “Through our partnership with John Lewis, we’re providing an easy-to-use service and investments that meet the growing demand for social responsibility to help John Lewis customers build a financial future for themselves and their families.”
