John Lewis Partnership chair Dame Sharon White has launched a sweeping strategic shift in a bid to revive the group’s flagging fortunes. Here, experts weigh in on whether her plan is the right one

Andrew Jennings

Andrew Jennings, global retail adviser and former Saks Fifth Avenue chief operating officer

‘Bravo, Sharon’ was my first thought when I read the recent announcements. It is going to take a radical change to set up the partnership as a relevant retailer suitable to serve the wants, needs and expectations of their current and future customer base.

The partnership is, in my opinion, a burning platform and I applaud her for her creative and far-reaching proposals and not just tinkering around the edges. Turning store space into residential, for example, is a brilliant idea and launching home services through electricians, painters and carpenters is very John Lewis.

In terms of new appointments, a new HR boss from Virgin will challenge the necessary culture change, while Pippa Wicks from the Co-op for department stores and James Bailey from Sainsbury’s for Waitrose make up three executives who have all had successful careers on other retail planets.  

In terms of store closures, the dramatic rise in online business in department stores indicates there clearly is no need for the amount of footage currently held, and going forward even less will be required. I just hope that Sharon White makes a deep enough cut in this round. 

Online, there is a lot of opportunity for Waitrose but I think it will take longer than she has indicated to meet the target penetration. Green shoots will take a lot longer than nine to 12 months to appear. There needs to be a total review of the online business in department stores to establish how they can run this at a greater profit

Never knowingly undersold, which was implemented by Spedan Lewis, is not commercial in today’s tough market environment.

Millennials and other customers will enjoy the opportunity to shop previously loved items if they are presented and marketed in the right way. The same applies to renting clothes. Many retailers around the globe are finding this hugely successful and, again, millennials need to thrive on this service.

Maureen Hinton

Maureen Hinton, global retail research director, GlobalData

The strategy is conducive to developing a modern retail business with the focus on digital delivery; realigning the store estate; simplifying operations; partnering with outside businesses; being modern, relevant, and inspiring; and expanding into growth products and services. Success will be in the execution.

JLP’s strength is in its range and service – acknowledged in the strategy. Despite the ramping up of online capabilities, it cannot match Amazon for speed and convenience, or Tesco for the number of online slots, so range and service are even more crucial to its success.

Giving frontline partners more autonomy will enhance the service element and using outside partnerships can speed up and improve technology and delivery – but there are risks. Will these outside partners deliver the service John Lewis customers expect? How can its service culture be disseminated successfully? The Co-op shares similar values to John Lewis, but will its click-and-collect partnership with the Co-op take food shoppers away from Waitrose?

As for range, John Lewis ‘being for life’s big moments’ is a good strapline (it sounds like its iconic TV ads) but its products have to be for more than the big moments – especially if it wants to attract new, as well as younger, customers.

Converting stores into affordable housing sounds tricky – would a hotel partnership be more suitable? Furnished with John Lewis products?

Finally, the never knowingly undersold price promise is a lead weight on profit, so it needs changing into a value message.

Richard Hyman

Richard Hyman, strategic adviser and founder of Richard Talks Retail

In 2009, John Lewis traded from 27 stores. Its planners predicted that a still modest online business would account for 40% by 2020. 

Pre-Covid, it was just ahead of that figure. Meanwhile, John Lewis embarked on the biggest physical expansion programme in its history, opening another 23 stores. 

I don’t know whether the two departments talked to one another or if and how the board reconciled these two fundamentals. Either way, it leaves today’s leadership with its two biggest issues.

The interim strategic review is a curate’s egg. Horticulture seems perverse. Housing in excess space is a worthy idea. The wonderful social purpose of the John Lewis Partnership is fine but only exists if the enterprise works commercially. Its lower-margin online business is cannibalising stores, diluting the latter’s trading economics.

The review tells us online will be 60% and John Lewis will be a “digital-first” retailer. It needs urgently to work out how to effectively translate service online and defend better what used to be market-leading service in-store. Fully integrating its two operating models is fundamental to this.