PROMOTIONAL RESEARCH

Retail Week recently asked 1,000 UK consumers to name, unprompted, the retailers and brands they feel provide the best shopping experiences   

At a time when cost, value and convenience are so imperative, Amazon, John Lewis Partnership, Asda and Tesco are getting closest to delivering this holy trinity.

This is according to findings from research with 1,000 UK consumers in Retail Week’s annual How They’ll Spend It report, published in partnership with SheerID and Vypr. 

Below, we take a look at the strategies of consumers’ top picks: 

Amazon

Amazon parcel under Christmas tree

  • Amazon’s UK sales climbed 11.7% to $35.6bn (£27bn) in FY2022
  • Same-day delivery expansion in 2024 
  • £500m-plus investment in AI and robotics across European supply chain 

What can one say about Amazon that has not been said many times before? The tech titan continues to move the goalposts in terms of what consumers expect from a retailer, particularly around speed and convenience, and it was the clear customer experience (CX) leader in our survey of consumers for this report.

Evidence of the company’s continued commitment to the above came in October when it expanded its same-day delivery service to more than 80 towns and cities across the UK, including Middlesbrough, Aberdeen and Plymouth. The move followed Amazon reporting that the number of items being ordered by customers for same-day delivery had more than doubled compared to 2023.  

The company gave an example of its capabilities, saying a customer in Leeds who ordered silicone chocolate bar moulds and pistachio spread at 8.30pm received them at 10pm the same day. 

So much of what Amazon can offer at the front end is supported by significant supply chain – or back-end – investment. Earlier in the year, the company said it would have invested “more than €700m” (£582.3m) in robotics and AI-powered technology in its European fulfilment centre network between 2019 and the end of 2024 – and these enhancements, it argues, support the customer proposition and the experience of its employees. 

Amazon has leveraged Vypr’s product intelligence platform to refine its private-label products, understanding how consumers place importance on provenance, especially in its own-brand food lines sourced from the UK. Staying ahead of shifting consumer expectations is essential for Amazon, enabling it to align to demand with an optimised supply chain. 

In October, Amazon also relaunched its second-hand division as Amazon Resale. This is a service that is helping to keep customer returns in circulation, so it supports the business’ sustainability targets but also ensures more products are available to customers at lower prices, which is essential in these fragile economic times. 

John Lewis Partnership

Peter Jones John Lewis store

  • John Lewis’ sales were £4.8bn, down 4%, in the full year to January 27, 2024 
  • The return of Never Knowingly Undersold has fuelled online traffic
  • Store upgrades are freshening up CX 

John Lewis has its mojo back after a period of post-pandemic transformation that saw the department store chain report a sales decline and huge losses. The revival has much to do with focusing on what it originally built its strong reputation on: customer service. 

The headline example of this return to customer centricity was bringing back the Never Knowingly Undersold (NKU) proposition in September, giving consumers confidence that the price of the goods they are buying from the department store are unmatched. In the 10 days after an ad launched with news of NKU’s return, the John Lewis website was reportedly drawing an extra 89,000 visits per day through natural traffic. 

Reinstating its former fashion boss, Peter Ruis, as executive director in January 2024 is helping drive the changes at John Lewis. He has reshaped the buying and merchandising teams to give them enhanced resource and focus, and the plan in-store is to free up staff to spend more time with customers.

Indeed, as much as John Lewis is experiencing an increase in online traffic, its stores have always been the anchor of its operations. And its flagship Oxford Street shop has undergone a £6.5m makeover to increase relevancy and improve the CX, which includes increasing the beauty hall by 25% and adding a selection of new brands such as a Waterstones bookshop. Its Peter Jones outlet in Chelsea is next in line for a major refurb, with the retailer adamant that a revived store experience is key to its ongoing recovery. 

John Lewis is combining a return to tradition with a modern twist, and the launch of buy now, pay later on its website in November, which allows consumers to purchase goods in three instalments made over 60 days, is a budgeting enabler for its customers. 

Asda

Asda Amazon Kiosk

  • Asda reported sales sliding by 5.8%, knocking a whole percentage point off its market share versus last year over the 2024 golden quarter
  • A new leadership team is in place to drive company forward 
  • Rewards app and in-store partnerships are poised to help build momentum 

Despite a spate of layoffs, unsettling senior management changes and a dip in market share, there is still hope of a quick turnaround for Asda – as consumers rate the shopping experience they get from the supermarket chain. And with Lord Rose appointed in September 2024 to lead the business and former chief Allan Leighton in place as executive chairman as of November 2024, there is confidence that the retailer can return to its growth trajectory. 

One of the services made available for the first time this festive season that could trigger a return to growth at the grocer is a link-up with fellow CX star Amazon. Thanks to a new strategic partnership between the businesses announced in November, Amazon customers can now pick up eligible orders from most Asda stores across the UK. 

Asda said providing Amazon pick-up and drop-off (PUDO) will make shopping at the supermarket “even more convenient”, as customers can do their weekly shopping and parcel collection or returns in one trip. It builds on an already strong PUDO proposition at Asda, which comprises its own To You service and allows consumers to processes packages from third-party retailers and brands.

The collaboration is convenient for shoppers as it reduces the need for extra shipping boxes because customers can return an item in the original manufacturer’s packaging. On announcing the tie-up, Asda vice president of logistics Chris Hall explained: “By bringing essential services like Amazon parcel pick-up and return drop-offs closer to where our customers live and work, we’re able to provide greater convenience to more of the communities we serve across the UK.”  

In a bid to get back to sales and market share growth, Asda said in August that it is laser-focused on improving customer satisfaction and enhancing product availability, supported by a £30m commitment to invest in more staff hours and £50m for a wide-ranging store refurbishment programme. 

Consumers’ positive sentiment towards Asda in 2024 could also have been aided by the £70m it said it has spent on reducing the prices of 120 core products, as well as the Asda Rewards app, which the retailer says is focused on shopping missions and has been well received. 

Tesco

The Tesco board was grilled at its AGM

  • Tesco reported pre-tax profit of £2.29bn (versus £0.88bn the year before) in the year to February 24, 2024. Group sales climbed by 7.4% to £61.48bn 
  • In-store partnerships are driving traffic 
  • A close eye is being kept on consumer behaviour shaping online strategy 

As a trailblazer in customer loyalty programmes in the 1990s with its Clubcard, Tesco has long been able to follow the data to shape its proposition in a way that suits consumers. 

It continued to keep a close eye on consumer behaviour in 2024 to ensure it has the right offering, this led to the June launch of an online marketplace to give consumers access to a broader range of goods and more of the items they were searching for. And a recent tap into customer insights resulted in the supermarket bringing its F&F clothing brand back online in October because, as chief executive Ken Murphy told Retail Week, “between 80% and 85% of all clothing searches now start online”. 

At most UK supermarkets, price reductions have been a feature of the year in light of the continued financial pressures consumers are facing. Tesco argues its “unique” customer offer of the Aldi Price Match, Low Everyday Prices and Clubcard deals has kept it as the “cheapest full-line grocer” for the best part of two years. 

Elsewhere, Tesco knows that to maintain in-store footfall, it has to bring variety to its spaces and embrace partnerships with third parties. In October, The Entertainer revealed it had introduced more than 850 toy shops within Tesco stores. Strategic tie-ups such as this will keep the supermarket experience fresh and attractive to shoppers. 

Ikea lockers are now at three Tesco shops too, meaning the flatpack furniture retailer’s customers can collect their purchases as part of their food shop. There are already 100 Ikea lockers at Tesco stores across the UK, but the extension of the partnership highlights the success both parties see in working closely together in the name of customer convenience. 

How Theyll Spend It 2025 report

To find out more about what consumers think about retail CX and how they plan to shop this year, register for your free copy of How They’ll Spend It here now. You’ll discover:

  • The four retailers consumers rate as delivering the best customer experience
  • The impact of the current economic environment on spending and what retailers can do in readiness  
  • How to create a compelling shopping experience that will convince consumers to spend