John Lewis will ditch its Never Knowingly Undersold pledge this summer, saying it has become less relevant to today’s shopper. The announcement was made alongside a commitment to invest £500m during 2022 in “great value prices” as consumers become more cost-conscious.
The department store retailer said that its price match promise, which has existed for nearly 100 years, was “no longer enough to assure trust because it applies to fewer and fewer sales as shopping moves increasingly online, and isn’t applicable to online-only retailers”.
John Lewis stated that it now plans to focus on “proactively leading on great value”, rather than reacting to other retailers’ price changes. This year’s £500m investment is claimed to be 25% higher than the amount it spent on keeping its prices competitive last year.
Pippa Wicks, executive director of John Lewis, commented: “Customers are tightening their belts and we’re responding so John Lewis is more affordable for every customer, every day whether shopping in-store or online.
“Never Knowingly Undersold has been a cherished sign of trust for John Lewis for a century but it doesn’t fit with how customers shop today as more purchases are made online. Our new £500m investment means all our customers can trust they’re getting the quality, style and service they expect from John Lewis at great value prices.”
John Lewis will continue to monitor other retailers’ prices, especially on key product areas for its customers. It will also offer a broad range of products at different price points and keep its standard two-year guarantees on electricals and five-year guarantees on TVs. Meanwhile, it will offer more personalised rewards through the My John Lewis loyalty scheme, similar to the move announced for the Waitrose loyalty programme.
The retailer also highlighted that its ANYDAY own-brand value range that was introduced in 2021 has become its most successful launch to date with over two million customers shopping the range in just nine months.
NAM Implications:
- Couple this with the dilution of ‘partner profit share’…
- …despite £500m investment during 2022 in “great value prices”…
- …and witness a fundamentally changed JLP.
- Fingers crossed….
