John Lewis Partnership plc Annual Report and Accounts 2014
43 Service and convenience
Technological innovation is driving demand for flexible shopping according to customers’ lifestyles.
Overview Changes in consumer shopping habits, supported by rapid technological advances, have had a significant impact on the UK retail market and altered the competitive landscape for ever. Consumers are now able to research products and reviews, compare prices and order their goods 24/7 on-line from home or ‘on the move’ from mobile devices. There is also demand for more flexible delivery and collection services which fit in with consumer preferences.
John Lewis customers use all channels
Our John Lewis customers tell us that a trip to John Lewis is a ‘leisure experience’ and our busiest shopping day of the week is Saturday, with peak trading between 11am and 3pm, although transactions per hour are higher on Sunday.
Source: How we shop, live and look. The John Lewis Retail Report 2013
How the Partnership is responding channel Source: Internal data
Nearly two thirds of customers use both in-store and online channels when shopping with John Lewis.
For Waitrose, other key trends, particularly for grocery purchases, include customers carrying out more “top-up” shopping (i.e. shopping more frequently but spending less money per trip). Typically, “top-up” shops are made in smaller convenience stores, which are located in high footfall areas (e.g. railway and service stations).
Despite strong online and convenience trends, we also know that our customers like to visit John Lewis shops to browse big-ticket items and Waitrose to select their own produce, for example.
64% Omni
20% 16%
Store only
Online only
to these trends In response to changing demands, we continue to invest in our omni-channel services, giving our customers the choice of when and how they wish to shop with us. Areas of investment include improving the customer experience on our websites, efficiency improvements in our IT systems and behind-the-scenes expansion of our online distribution and picking capacity to cater for increased demand.
We also continue to invest in new retail stores and services. In 2013/14 we invested £296m in our branches, on new stores and refurbishments. We opened five little Waitrose convenience stores in 2013/14 (one within a John Lewis shop itself). Inside our Waitrose stores, we have focussed on developing services which appeal to our customers (such as welcome desks, more in-store product demonstrations and the availability of hot drinks).
At John Lewis we have launched new catering partnerships, for example Joe & the Juice and Hotel Chocolat’s Cocoa Bar Café. During the year John Lewis refurbished the High Wycombe branch and will open its smallest shop to date at London Heathrow Terminal 2 in 2014.
We also provide exclusive membership benefits to myWaitrose and my John Lewis card holders – giving shoppers in store something different to the experience they can get online.
Partners ready to welcome customers at Waitrose Wells.
“ Within the John Lewis customer base, 50 per cent from smartphones and
tablet computers.” Source: How we shop, live and look. The John Lewis Retail Report 2013
HESTON FROM WAITROSE
Heston from Waitrose is expert innovation that brings fabulous flavours and an unexpected twist to favourite dishes.
THE JOHN LEWIS PARTNERSHIP
OUR PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS
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