John Lewis, the UK’s leading department store chain, has been a household name for over 150 years.
However, in recent years, the company has struggled to keep up with changing consumer habits, leading to a decline in sales and profits.
In an address to staff in March 2021, John Lewis CEO Pippa Wicks acknowledged that the company’s business model needs urgent reform.
She highlighted the need to adapt to the changing retail landscape and the shift towards online shopping.
Wicks noted that the company has been too slow to embrace digital transformation and invest in e-commerce capabilities.
As a result, John Lewis has fallen behind competitors like Amazon and ASOS, which have established themselves as leaders in the online retail space.
To address this challenge, Wicks outlined a new strategy that includes a significant investment in online shopping and a shift away from traditional brick-and-mortar stores.
The company plans to expand its online offering, improve its website and mobile app, and increase its social media presence.
At the same time, John Lewis will reduce its physical footprint by closing some of its stores and downsizing others.
The company will focus on creating more experiential shopping environments that offer personalized service and unique experiences.
Wicks also emphasized the importance of sustainability and ethical sourcing in the company’s operations.
She announced plans to reduce the company’s carbon footprint, eliminate single-use plastics, and source more products from sustainable and ethical suppliers.
In addition to these changes, John Lewis is exploring new revenue streams, such as partnerships with other retailers and the launch of new product lines.
The company is also considering new ways to engage with customers, such as virtual shopping experiences and personalized styling services.
Overall, Wicks’ address to staff signals a significant shift in John Lewis’ business model, the company is taking bold steps to adapt to the changing retail landscape and position itself for future success.
While these changes may be difficult in the short term, they are essential for the company’s long-term viability and relevance.