The recent half-year results for John Lewis have sparked a lot of interest. The iconic retailer has managed to drastically cut its losses, leading many to wonder if this signals a new dawn for the high street giant.
With the reintroduction of a well-known slogan, the retailer appears to be making strides in the right direction. Could this be the start of a long-awaited turnaround for John Lewis?
The Comeback Slogan
“Never Knowingly Undersold” has made a surprising return. Initially introduced by John Spaden Lewis in 1925, this slogan stood the test of time until its removal in 2022. The company has decided to bring it back, reflecting its importance to both the brand and its customers.
This slogan was not initially intended for public consumption. It was aimed at product buyers within the company to ensure they secured the best prices from wholesalers. Over time, it became synonymous with the brand’s promise of value, quality, and service.
Financial Performance
John Lewis reported a loss of £30m for the first half of this year. While this might sound alarming, it is a marked improvement from the £59m loss recorded in the same period last year.
The brand faced immense pressure from online retailers, which forced it to adapt and rethink its strategies. Interestingly, only 1 per cent of customers previously used the slogan to secure lower prices, prompting its removal two years ago. Nevertheless, recent surveys indicate a strong customer preference for its return.
Challenges and Strategic Changes
The retailer has faced significant challenges, with competitors like Amazon intensifying the market pressure. Despite efforts to adapt through digital operations, physical stores remained affected.
Additionally, the brand’s mutuality principle, which granted employees partnership status, came under stress. Bonuses were slashed, and redundancies became a painful reality. The company also struggled with maintaining its USP, a vital element for any successful business.
However, under new leadership, there seems to be a renewed focus on core activities. Peter Ruis, the new CEO, has shown a commitment to returning the company to its retailing roots, suggesting a fresh approach to old challenges.
Technological Innovations
One notable difference is the advent of AI technology. The company now uses AI to monitor prices on branded goods across 25 competitors, including major players like Amazon. This technological edge allows John Lewis to stay competitive.
The reintroduction of the slogan combined with technological advancements shows a blend of traditional values and modern efficiency. This dual approach could be key to navigating the current retail landscape.
Customer Sentiment
A recent survey of 5,000 customers found that 75 per cent believe the modernised version of the slogan enhances their perception of value at John Lewis. This metric indicates a strong customer loyalty that could be pivotal for the brand’s recovery.
The company claims its decision to “pause” rather than permanently drop the slogan highlights a listening approach to customer feedback. While initially there was scepticism, the data supports this strategy.
The Road Ahead
Management has been keen on exploring multiple avenues to boost profitability. The painful process of closing outlets under the previous chief was necessary but has now provided a leaner structure ready for growth.
The retailer seems to be positioning itself for a renewed focus on its core activities. Balancing tradition with innovation, John Lewis is attempting to carve out a unique space in an increasingly competitive market.
Conclusion
In summary, John Lewis appears to be making a concerted effort to exit the high street doldrums. The return of the “Never Knowingly Undersold” slogan, combined with strategic and technological innovations, presents a promising outlook.
Only time will tell if these measures will be enough to restore the brand to its former glory. However, the signs of improvement are certainly encouraging.
John Lewis is taking deliberate steps to reignite its success on the high street. The new strategies and the return of a beloved slogan indicate a strong, customer-focused approach.
While challenges remain, the measures implemented so far show promise for a brighter future for this iconic retailer.