John Lewis has been a trusted heritage brand for more than a decade, but its shine has dulled somewhat in recent years. Will it be able to rebuild its reputation?
John Lewis has announced the return of its ‘Never Knowingly Undersold’ pledge. What was once a price-matching commitment recognised in households nationwide was scrapped in 2022 – a rash decision made after a difficult recovery in the wake of Covid saw the company post losses for two consecutive years.
For a brand that prides itself on customer service, termination of the scheme was an ill-advised step away from its founding principles – and a statement against the customer focus on which it had built its reputation as a British institution of some 150 years.
So, the question is this, will the reintroduction of ‘Never Knowingly Undersold’ be enough for John Lewis to reclaim its former glory? Or is the brand actually in danger of underselling itself?
A customer pledge that stands the test of time
For many, the store’s long history gives it a level of pedigree. It built a reputation that saw it stand above its high street competitors. Quality goods, engaging in-store experience, friendly customer service and generous warranty schemes all built its reputation among middle-Britain’s shoppers. Where other retailers faced competition from low-cost supermarkets and fashion outlets, John Lewis held its position until Covid hit.
By mid-2022, panic had set in as John Lewis had already shut 16 stores across the country alongside abandoning ‘Never Knowingly Undersold’. Two years later and the reintroduction of this brand promise is a bold statement, but John Lewis still has a long way to go if it’s to return to the good old days as a staple of British retail.
The bold offer of price-matched goods may have returned with a modern update – a streamlined approach sees stores using AI to calculate the cost of goods both online and in-store, for example – but embracing digital technology in this way simply isn’t enough in a world where customers crave a direct connection to brand, and brands are working hard to build and own these direct connections across both digital and non-digital settings
With this in mind, how does selling via concessions like John Lewis impact the control a brand has over the experience of ‘its’ customer experience or relationship with them? The answer to this takes more than a smart digital strategy. It also demands a store strategy that allows John Lewis to find new ways to add value in a world where brands and customers are more directly connected than ever before.
A customer pledge that reimagines the future
John Lewis was once known for its standout in-store experience facilitated by unrivalled levels of helpfulness and expertise from its staff – which is why the recent announcement that John Lewis would reduce its staff by 11,000 across the next five years rings alarm bells. Commercial pressures have curbed investment in customer service that’s classed as a cost rather than a growth driver, yet all it’s done is degrade the store’s potential difference on the high street.
Take away the staff, potentially the brand’s greatest asset, and what reason does John Lewis give people to visit their stores versus shopping directly with their favourite brands? Or for brands to want to sell products in John Lewis? How are they using consumer insights to inform their in-store experiences, and are they wrongly deprioritising the role of service in their strategies at a time when creating a credible ‘John Lewis difference’ is more important than ever before?
John Lewis still holds a big advantage in terms of the range of concessions and breadth of coverage it has, but to ensure this is sustainable in the long-term, it needs to be coupled with a return to its roots in traditional service culture, plus the development of a winning strategy that positions its stores as the ‘stage’ for brands and customers to interact in a way that offers value to both.
A British Institution reimagined
Rather than trying to reclaim its former position, John Lewis now has the opportunity to build a new one – by reimagining itself as a destination that offers both shoppers and brands additional benefits. If they don’t, they risk becoming another soulless ‘platform’ for a range of products, while also placing the store’s own products in direct competition with other, more established ones.
High street rival M&S – which never used concessions in the past – has tackled this by selling other brands to complement their own brand offering. The key to its success being a focus on complementary rather than competing products.
For John Lewis, that focus creates the pull that brings customers in-store, looking for a specific in-person shopping experience – much like the good old days. This is what engenders a direct connection to the John Lewis brand, and what will underpin a truly revamped customer promise of ‘Never Knowingly Undersold’.
Customers know and trust John Lewis and listening to those customers about what they want is the only way back. Whether John Lewis chooses to listen or not will be the difference between high street success and faded glory.
First published in Management Today.