Success in retail these days is frequently neither easy nor cheap so retailers should look to John Lewis’s changes to see how it is adapting.

Success in retail these days is frequently neither easy nor cheap.

Empowered shoppers increasingly expect fast, always-on, personal service as they channel hop from smartphone to store and bandy the term omnichannel like industry pros.

Their cross-channel expectations place a cost burden on retailers who must control and distribute stock ever more efficiently and convey it to customers’ destination of choice within hours.

Investing in multichannel

John Lewis was one of the first to overhaul itself to adapt to the new realities.

During the downturn it had the financial firepower and the foresight to invest in multichannel.

So the industry will take notice of this week’s changes at the department store group, which restructured management board responsibilities explicitly to put the customer ever more at the heart of business and to “lead omnichannel retailing in the UK”.

John Lewis became the latest to appoint a customer director – marketing supremo Craig Inglis takes on that role. That reflects retailers’ need to develop an ever more sophisticated understanding of their shoppers and a more powerful bond.

Significantly, John Lewis also made Andrew Murphy productivity director – a new post with responsibilities across the Partnership, not just the department stores. His remit ranges from organisational structure to financial strategy.

That is indicative of the fact that, not just at John Lewis but across retail, and despite having left the downturn behind, assets have to really be sweated to ensure financial success.

Making omnichannel profitable

John Lewis has taken action already on that front, whether it’s the introduction of charges for click-and-collect or making the most of its relationship with Partnership stablemate Waitrose to provide extra outlets for that service.

Charging for click-and-collect illustrated the pressures on making omnichannel retail profitable.

To that industry-wide challenge add further costs, such as the living wage.

In today’s environment retailers need to be at the top of their game on the shopfloor, online and in the back office.

Retailers will watch keenly to see what results John Lewis’s new leadership structure delivers.