In 2022, John Lewis made the controversial decision to remove their “Never Knowingly Undersold” promise, which guaranteed they would price match with proof of purchase. This week, they’ve announced the return of the price-match promise, now updated to include online price matching with 25 major retailers. So, why the change of heart, and what can we learn from their decision to apply to our own business strategies? First, let’s take a look at what’s been happening in John Lewis’s world over the past couple of years 👇 ✨High street changes: Many major department stores that once stood alongside John Lewis have nearly all but disappeared.
✨ E-commerce growth: Online retail now accounts for around 25-30% of total UK sales, up from approximately 19% before the pandemic. (Previously, John Lewis only matched prices for items bought in physical stores.)
✨ Leadership shift: John Lewis experienced a change in leadership, with a new focus on profitability as the department store faced financial challenges.
✨ Pandemic and inflation: The pandemic and subsequent high inflation rates brought widespread disruption.
So, what can we learn?
Know Your Audience
John Lewis’s initial decision to remove the price-match promise likely alienated loyal customers who valued the trust and reliability the brand represented. By reinstating and modernising the promise, they’ve recognised the importance of understanding and evolving with their audience.
Takeaway: Continuously engaging with and understanding your customers is vital to ensure your offerings remain relevant and valuable. Embracing flexibility in your strategy, as John Lewis has done with their updated promise, helps you stay responsive to changing market dynamics.
Know Your Why
The John Lewis Partnership has long been seen as a force for good, with a clear purpose of “working in partnership for a happier world.” Straying from this purpose led to a loss of distinctiveness in a competitive market. Removing the price-match promise, along with other decisions such as changing staff rewards, moved them away from their core values of partnership, causing customers to question their commitment.
Takeaway: Staying true to your core values and purpose ensures that your actions and decisions consistently reflect your brand’s mission. Aligning with your foundational principles helps maintain your distinctiveness and customer loyalty, even in challenging times. Regularly revisiting and reinforcing your core values can keep you aligned with your long-term vision.
Stick to Your Guns
The retail market is inherently volatile (read: exciting). John Lewis’s experience highlights the importance of staying consistent with your strengths and foundational principles, even during tough times.
Takeaway: Identifying your core strengths and remaining steadfast in them is crucial, as is maintaining consistency. This can help sustain customer trust and loyalty. Balancing short-term gains with long-term values ensures you don’t compromise on what has built your brand’s reputation.
Additional Insights
✨ Embrace Flexibility in Strategy: John Lewis’s decision to modernise their price-match promise shows their ability to adapt to evolving consumer behaviours. Being flexible and responsive to new trends and customer feedback is essential for staying competitive.
✨ Communicate Changes Clearly: When making significant changes, clear and transparent communication is key to managing customer expectations and maintaining trust. Effective communication ensures customers understand any new policies or updates.
✨Balance Short-Term Gains with Long-Term Values: While focusing on immediate financial pressures, it’s important to consider the long-term impact on brand loyalty and customer relationships. Balancing short-term and long-term goals ensures sustainable growth and brand strength.
John Lewis’s journey underscores the importance of adaptability, customer-centricity, and staying true to core values. By reflecting on their experience, businesses can better navigate market changes and sustain strong customer relationships.
Do you have any other takeaways? How do you think these insights could be applied to your own business or industry? Let's chat below 👇
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