Tough times are demanding that John Lewis considers whether it is time up for its 95 year old pledge to customers ‘never knowingly undersold’. Mounting competition involving heavy price slashing is coming at the department store from the high street and online has seen the business forced to price match and refund the difference to affected customers. Incoming CEO Dame Sharon White is under immense pressure to reverse the downward trend that has dogged John Lewis over the past few years, culminating in a loss of £37 million for the year to January 31st. It is understood that the future of 50 John Lewis department stores is under review with some potentially being scaled back in size or closed altogether, and with the possibility of John Lewis taking ‘concession’ style space in some of its Waitrose supermarkets rather than continue with standalone stores in certain areas.
Julie Palmer of Begbies Traynor commented; “John Lewis’ fall from grace has been spectacular. Once the envy of the retail industry, the company has suffered dismal trading performances over the past few years. This goes to show that no retailer is safe.”
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