Speaking of the development, John Lewis Partnership strategy & commercial development executive director Nina Bhatia said: "This is a bold plan to grow our business and get us much closer to our customers".
It said it is investing £100 million to rapidly grow its financial services arm, with customers able to secure retail credit across its business from early next year.
Moreover, the firm announced a number of sustainable food measures, including a commitment for Waitrose to source only from net zero carbon farms in the United Kingdom from 2035 and move to extend its pledge to halve food waste by 2030 to its entire supply chain. John Lewis is now a 60% online retailer, and has successfully adapted to offer many in-store services online. It is committed to halve food waste in both its own operations and its supply chain by 2030.
The partnership, which reported a first-half loss of £635m last month, is also seeking efficiency savings of £300m a year by 2022.
Waitrose said it would spend £1 billion over five years to "accelerate our online business and transform our shops". The historic pledge to be "Never Knowingly Undersold" remains in place until then.
The company also said it is pushing forward with plans to expand into housing, highlighting that it has identified 20 potential sites which could be used for private housing.
John Lewis Partnership chairwoman Sharon White said: "We've seen five years of change in the past five months, and Waitrose and John Lewis have responded with great agility. And we're now talking to developers and investors who can help us achieve our ambitions".
Waitrose, which has stores in Cirencester, Stroud and Cheltenham, and John Lewis, which has a store in Cheltenham, are focusing on a number of key areas in their plan, including increasing digital and improving sustainability. But she stressed that today's plan would see the firm "thrive for the next century, as it has the last".