The John Lewis partnership is partnering with digital wealth manager Nutmeg to launch a range of ISAs as the company seeks to generate more revenue outside of retail.

The company said the latest move into financial services, which will offer customers Junior, Stocks and Shares and General Investment ISAs, forms part of the partnership’s plans for 40 per cent of its profits to come from outside retail by 2030.

It follows a recent announcement that it would build 10,000 rental homes in the next 10 years.

The company has committed £100m over the next five years to quadruple its financial services business.

In a statement the company said: “Based on customer research, we know that there is a significant opportunity for a brand customers know and trust like John Lewis to partner with an expert like Nutmeg to deliver simple investments.

“The three new products aim to help those who otherwise would not consider investing and are the latest to be introduced to John Lewis financial services, following the relaunch of our home insurance and retail credit offers earlier this year.”

The launch comes as a survey conducted with 2,000 UK adults on behalf of John Lewis by OnePoll revealed the impact that the pandemic has had on the way consumers think about money, with 52 per cent saying that it has made them reassess how they spend and save.

Those continuing to save £1,000 or more has increased by almost 20 per cent - 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 home.

The survey also showed that 72 per cent of people said they would consider investing in stocks and shares rather than just putting their money into a current account yet 59 per cent 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 per cent of those surveyed said they already invested.

All three of the ISA products invest in funds with high Environmental, Social, and Governance (ESG) standards, with the portfolios focussing on businesses which score highly in the areas of carbon emissions, climate change, renewable energy, social impact and ethical practices.

John Lewis partnership said the minimum investment is £100 with customers able to choose a timeframe and risk level that suits them.

The three ISA products are:

Junior ISA - A tax-free investment with a yearly allowance of £9,000, which enables parents, guardians and grandparents to make regular contributions to a Junior ISA for a loved one under the age of 16, which only the child can access when they turn 18

Stocks and shares ISA - Invest money in stocks and shares ISA and customers won’t pay any tax on their returns. Any growth they make on their yearly allowance (£20,000) is tax-free

General Investment - Customers can invest in a general investment account if they have used up their £20,000 ISA allowance for the year

Amir Goshtai, John Lewis financial services director, 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.”

Neil Alexander, chief executive officer, Nutmeg, said: “Since the start of 2020, we’ve seen a significant increase in people looking to invest in order to build a more dependable financial future for themselves and their families.

“Nutmeg’s mission has always been to empower nations of investors and there’s never been a more important time to harness this new appetite. 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.”

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