Yesterday it was introduced that John Lewis is bringing again its ‘By no means Knowingly Undersold’ worth pledge “for the trendy age” as of Monday 9 September, two years after abandoning it after it had turn into “not match for objective” in its unique format.
The transfer is being pushed by John Lewis Government Director, Peter Ruis, who rejoined the retailer in January 2024. Ruis was beforehand at John Lewis between 2005 – 2013 and held numerous senior roles, together with Shopping for & Model Director.
He started engaged on the plan to reintroduce the worth pledge in February, and now his imaginative and prescient is coming to fruition. It additionally has the approval of incoming new John Lewis Chairman, Jason Tarry.
A serious part of the brand new plan is a worth match with 25 of John Lewis’s major rivals, together with NEXT, M&S, Harvey Nichols, Selfridges, Fenwick, Flannels and Home of Fraser – each in-store and on-line. All made attainable by John Lewis investing “multi-millions” in a brand new AI know-how referred to as new Quicklizard, which it has trialled with 5,000 clients – amazingly with out phrase getting out to the broader public and press till now.
It implies that if a buyer is in a John Lewis retailer and sees a product they like, after which finds it cheaper at one of many different 25 retailers on-line whereas looking on their telephone, John Lewis workers on the store ground will immediately match the worth. However the know-how will permit workers to be one step forward of the sport on pricing anyway.
There’ll even be a seven-day worth promise, so if a buyer discovers their buy cheaper elsewhere in that point interval they are going to be refunded the distinction.
Ruis delivered John Lewis’s new technique to press in some depth yesterday (although there will likely be extra to return when the retailer’s half-year outcomes are introduced subsequent Thursday), together with revealing its greatest ever advertising spend.
The ‘By no means Knowingly Undersold’ worth pledge will return as of Monday 9 September.
There are to be three new TV commercials, the primary of which can air nationally on 19 September that includes actor Samantha Morton and music artist Laura Mvula, celebrating 100 years of By no means Knowingly Undersold. The opposite two will observe in fast succession because the construct as much as Christmas positive aspects momentum.
There will even be double-page unfold promoting in nationwide press as of 9 September, all centred across the reintroduction of By no means Knowingly Undersold alongside the retailer’s model values and “dedication to high quality, service and worth”.
Ruis stated: “I’ve been again (with the enterprise) for seven months, and I’ve been speaking to our clients, our companions and our manufacturers, and I’ve been seeing what’s occurring within the market.
“The largest and a very powerful factor that was referred to as for, was to do one thing actually thrilling with our model. One thing concerning the future that’s related and radical, however one thing that can also be concerning the previous – and is the purest and most enjoyable definition of our model.
“That’s why, as of Monday, we’re bringing again By no means Knowingly Undersold – 100 years because it was launched (in 1925). That is our model promise, and it’s concerning the high quality, service and costs we provide – I’ve at all times believed that the rationale John Lewis is so distinctive is the mixture of the three. It’s additionally very uncommon that you could be at a model that’s received a 100-year model promise.
“It has at all times been wonderful, it simply needs to be acceptable for the sector we’re in now. It’s not only a throwback, it needed to be up to date. My philosophy in life and my philosophy in work is to have one of the best of the previous and one of the best of the brand new.
“It’s going to be again, nevertheless it’s going to be loads higher and completely different to earlier than. Our agility on worth is means forward of what it has ever been.
“However this isn’t a drive to extra value-led proposition, it’s about being us. It’s extra about that on a regular basis worth fairly than working promotional provides and clients having to attend.”
Ruis stated that a lot has been written concerning the points the retailer had two years in the past, the place there was the By no means Knowingly Undersold worth promise that hadn’t lasted the take a look at of time. He stated clients had received confused. They didn’t know if it was on-line, in-store or the way it labored.
What John Lewis has now executed is up to date the proposition with a brand new worth mechanism, and it has additionally examined it with 5,000 clients. Ruis stated he’s “amazed” that didn’t leak.
What it revealed is, 87% of consumers thought it was clear, easy and simple to make use of, 75% stated it might make them say that John Lewis provides nice worth for cash, and 63% stated it might make them extra more likely to store with John Lewis.
“I used to be genuinely amazed by these stats,” stated Ruis. “We do supply actually nice worth day by day, however this has actually sharpened the shoppers’ notion of us.
“High quality has at all times been about what we’re. We handpick from one of the best manufacturers and we really select our assortment – it’s not a blind market. Usually talking, our rivals are both opening worth, luxurious worth or caught within the center. We provide that beautiful mixture.”
The division retailer’s elevated give attention to magnificence comes because the class does “extremely nicely” for John Lewis.
Ruis additionally talked of some 680 investments in retailer enhancements throughout its retail property. They embrace a brand new jewelry part launching in its Oxford Avenue flagship retailer on Monday. It is usually solely 4 weeks away from launching a brand new magnificence part in the identical retailer, whereas its Cheadle and Excessive Wycombe shops are getting a makeover of their magnificence departments too.
Store workers could have the flexibility to stroll from model to model to curate an assortment for purchasers.
Adjustments are additionally afoot on the style division entrance. Ruis stated they’ll take inspiration from its magnificence concessions mannequin, with “extra workers on the shopfloor” because it “brings extra companions to the entrance of home fairly than to the again of home”. They will even have larger product data. That features taking up model specialists for the likes of Ralph Lauren and providing higher service within the course of. Shopfloor workers will even have the flexibility to stroll from brand-to-brand to create a curated assortment for purchasers.
New funding in know-how means John Lewis could have the largest use of digital headsets on the shopfloor in Europe, so workers will likely be rather more “related”. Some 6,000 headsets are being issued, and it’s already serving to to chop wait instances and take away the necessity for workers to have to trace one another down in any given department. In consequence, John Lewis is “already seeing enhancements in buyer satisfaction scores”.
Ruis says that clients nonetheless see John Lewis as primary for service when it comes to omnichannel retailers. “We’ve truly received 18,000 Click on & Acquire factors – that’s loads,” he commented.
“I’m additionally actually enthusiastic about two massive investments that centre round service coming this yr. Considered one of them is new ship from retailer know-how, which implies that all the pieces in our 36 shops will turn into obtainable for our clients on-line.
“Will probably be fully friction free – you gained’t know that your t-shirt has arrived from our Cardiff retailer, or from our DC (distribution centre) in Milton Keynes – it would make our on-line service actually good.
“Then we’re additionally investing in a brand new direct to shopper platform the place we are able to have extra of the manufacturers our clients love straight coming from the DC of the model, which will likely be faster and can permit a larger alternative of one of the best manufacturers – on to our clients.”
Ruis describes John Lewis as “a nationwide treasure”, however reviving the worth pledge isn’t just for sentiment.
Concerning the brand new worth promise, forward of Monday’s launch there was roughly 30,000 worth modifications applied.
Ruis commented: “We are actually going to cost match our 25 main rivals – over £50 billion value of aggressive commerce, with a seven-day worth mechanism. We’re proudly making a quite simple mechanism for purchasers to grasp how we match worth.
“Why are they the highest 25 rivals? As a result of they’re both the market chief or they’re the place our buyer outlets elsewhere. So, it’s NEXT, it’s M&S, Boots, Fenwick – and all the specialists, whether or not they’re on-line solely or omnichannel. We’ve chosen 25 to make it fast, easy and simple for our clients to grasp. It additionally must be related when it comes to the place our clients think about purchasing.”
In keeping with Ruis, the 25 chosen rivals aren’t set in stone. They may change over time to make it work and be probably the most related at any given time.
“Why can we make this work?” requested Ruis. “As a result of we’ve invested in a multi-million pound new know-how referred to as Quicklizard. It’s AI enabled and it permits us to match all costs each minute of day by day.
“We all know all the costs, we all know the place they’re, and it provides our groups an opportunity to see in actual time – with full visibility and accuracy. As I stated, we’ve been enjoying with this device for just a few months. We all know it really works and it permits us to be rather more dynamic.
“We’ve talked to our clients and the first factor round a worth promise is believing (in us). They don’t wish to be checking the entire time, and this AI device permits us to offer them that reassurance.”
Ruis does concede that “issues will go flawed” and that some retailers “change costs 5 – 6 instances a day”. That’s why he says that, if at any level they do get it flawed, there’s the seven day worth promise as a again up.
“A buyer can due to this fact come within the retailer, present a worth on-line from a competitor, and if we don’t have the precise worth we are going to give them the distinction immediately,” stated Ruis.
“In the event that they’ve purchased a product from us, and so they’ve found the worth isn’t proper within the seven-day interval, we are going to refund the distinction on to them relying on their methodology of fee, whether or not it was on-line or in-store. It’s fast, easy and simple.
“This can be a model promise, not only a worth promise. It’s concerning the relaunch of By no means Knowingly Undersold – which is about our model and why it’s so particular and completely different.”
By no means Knowingly Undersold was launched publicly within the retailer’s Peter Jones retailer in Sloane Sq. in London in 1925, earlier than rolling out to its different outlets in 1926 as a promise of nice worth to clients.
When it was first launched, the idea was revolutionary, setting John Lewis aside as a retailer that prioritised buyer belief and equity over revenue margins.
Ruis describes John Lewis as “a nationwide treasure”, however reviving the worth pledge isn’t just for sentiment. He stated it would drive gross sales, not hit income. The massive funding the retailer is making to make it work will turn into very evident within the coming weeks.
Ruis added: “Coming behind this, there’s an enormous nationwide promoting marketing campaign that can kick off on 9 September. There will likely be our greatest ever funding in advertising within the second half of this yr. There’s going to be three massive [TV] adverts, with the primary one launching on 19 September.
“It relaunches our model promise and it talks about how John Lewis has labored with Britain and the general public for over 100 years – trying forwards and searching backwards, and it performs on the beautiful time period ‘Knowingly’, which is on the centre of our promise.”
