John Lewis has announced the reactivation of its historic ‘never knowingly undersold’ price pledge, initially shelved over concerns about its modern relevance. The pledge will be reinstated from Monday, 9 September, as part of an effort to enhance its value perception among shoppers.
To implement this renewal, John Lewis will employ AI technology to match prices with 25 major competitors, both in-store and online. This move is expected to result in approximately 30,000 price adjustments next week, according to a report by City AM. Peter Ruis, who took over as the head of John Lewis in January, contemplated reviving the pledge just a month into his tenure to sharpen the company’s competitive pricing.
The list of competitors whose prices John Lewis intends to match includes AO.com, Amazon, Apple, Argos, Asos, Boots, Currys, Dunelm, Dreams, The Entertainer, Fenwick, Flannels, Furniture Village, Harrods, Harvey Nichols, Heal’s, House of Fraser, Lakeland, M&S, Mama’s and Papa’s, Next, Richer Sounds, Selfridges, Smyths Toys, and Space NK.
Supporting this initiative, John Lewis is set to launch its largest marketing campaign to date, coinciding with the reinstatement of the pledge. The ‘never knowingly undersold’ promise, which dates back to 1925, was previously withdrawn in 2022 following concerns that it no longer aligned with contemporary shopping habits.
On Thursday, Mr Ruis acknowledged that technological advancements have enabled the retailer to offer an improved version of the promise. ‘Customers have recognised our quality, but there were questions over whether our value offer has been sharp enough in some areas,’ he stated. ‘The pricing mechanism we had before wasn’t fit for purpose, so changing that has absolutely been the right thing.’
These developments occur amidst significant leadership changes within the company. Jason Tarry, former Tesco UK and Ireland chief, will assume the role of chairman of The John Lewis Partnership early next year. Dame Sharon White, the current chairwoman, remarked, ‘Now is the right time for ‘never knowingly undersold’ to return in a form that will resonate with customers whether they’re shopping in-store or online.’ She expressed her delight that Mr Ruis and his team are reinvigorating the promise for the 21st century.
The reactivation of John Lewis’s ‘never knowingly undersold’ pledge, bolstered by AI technology, marks a strategic effort to reaffirm the retailer’s value proposition. With significant leadership changes on the horizon, the company aims to enhance customer satisfaction both in-store and online.