John Lewis Partnership is on the cusp of a remarkable turnaround as it anticipates “significantly higher” profits this year. This shift in fortune is a testament to strategic manoeuvres across both its brands, John Lewis and Waitrose.
Revival of ‘Never Knowingly Undersold’
In a strategic move, John Lewis has revived its famed ‘Never Knowingly Undersold’ promise, a pricing strategy rejuvenated with artificial intelligence’s aid to keep up with 25 other retailers, including M&S and Next. The reintroduction has bolstered both sales and website traffic significantly, with Peter Ruis noting an exceptional reception.
The price promise’s influence now spans unexpected categories, such as own-brand bedding. This renewed strategy is poised to sustain momentum through the crucial golden period, culminating in the anticipated Christmas advertisement campaign, aiming to captivate a wide customer base.
Waitrose’s Market Share Uplift
Waitrose has also marked impressive growth, notably increasing its market share for the first time in over two years. The upmarket grocer experienced a 5% sales boost in the first half, driven by initiatives like a meal deal, attracting new lunchtime trade and encouraging existing customers to spend more.
The store’s strategy, encompassing price reductions and partnerships with renowned brands such as Ottolenghi, forms a robust foundation for future successes. Waitrose’s progressive approach anticipates enhancing its appeal as inflation pressures ease, encouraging a consumer shift towards more premium purchases.
Enhancements in Retail Offerings
John Lewis is on a path to redefine in-store experiences. Executive director Peter Ruis has prioritised investments, particularly in the second half of the year, to amplify growth and productivity.
Among the strategic advancements is the opening of three new beauty halls and the inclusion of a Waterstones bookshop on Oxford Street. These expansions reflect a commitment to elevating the customer journey through a blend of complementary offerings.
With additional staff training and technology enhancements, like mobile payment options, John Lewis is enhancing its service quality, aiming to meet evolving consumer expectations efficiently.
Waitrose’s Innovative Store Formats
Waitrose is ready to roll out a new shop format, aiming to open its first new store in over six years soon. The new format debuts in eight larger stores and features an expanded fresh produce department, updated refrigeration, and the first fully chilled beer, wine and spirits section.
This comprehensive store enhancement programme reflects Waitrose’s dedication to maintaining a competitive edge in the market, fostering improved consumer experiences.
While initially conceptual, these changes represent a significant upgrade over existing stores, addressing longstanding consumer expectations and paving the way for further store innovations.
Reinforcing Product Availability
Product availability is crucial for John Lewis and Waitrose, with both brands now reporting significant improvements. Waitrose, in particular, has reached record levels at 96.5%, facilitating better customer service.
The roll-out of ship-from-store technology is a game changer for John Lewis, seamlessly integrating inventory across all locations to enhance customer convenience.
These advancements reflect a broader commitment to elevating the brand’s overall service quality and customer satisfaction, essential elements in its ambitious turnaround strategy.
Future Directions and Investments
The upcoming months are pivotal for the John Lewis Partnership as it continues to implement its strategic investments. Waitrose plans to open 100 new smaller stores across various locations.
This expansion strategy is complemented by revamping existing sites to better serve customer needs, ensuring that both brands remain competitive and relevant.
With a focus on increasing market presence and refining the shopping experience, the partnership is well-positioned to achieve its profit goals and sustain its growth trajectory.
John Lewis Partnership’s recent strategic initiatives underscore a turning point towards achieving higher profitability. Their focus on enhancing customer experiences, improving product availability, and expanding market presence places them on a promising path for future success.
