Annual Report and Accounts 2016


John Lewis Partnership plc


21


So what does this mean for the Partnership?...


…Customers are increasingly likely to demand more, including higher expectations of customer service and more information about the products they purchase.


...The polarisation of customer needs will deliver a more diverse customer base. In response, the Partnership will need to adapt and personalise its service proposition.


Data analytics


It is anticipated that enhanced data analytics will support a level of personalisation that is much more refined than it is today, turning on its head the notion of customer segmentation. This could allow services and products to be tailored to individual customers – particularly at the higher end of the market.


We are developing our understanding of the customer of the future through improved insight.


Product to service


Innovations could change the nature and appeal of what we buy, as technology increasingly becomes part of our lives. With greater connectivity and the ‘internet of things’, we expect more products to become services, including large product categories such as white goods.


We are exploring new technologies to ensure our offerings respond to what customers want.


… Some of our more profitable sales categories may be delivered in a very different way in the future. This will mean the Partnership needs to differentiate the products it offers to customers.


…The retail sector continues to face squeezed margins and is becoming much more capital intensive. We have identified our operating model as a key future focus area for the Partnership.


Squeezed margins


The cost of new technology may place greater pressure on prices, and squeeze already pressured retail margins.


We are introducing money saving initiatives and taking into account the higher costs of operating through our financial planning. We are developing our assortments and service to make sure our offer remains differentiated from our competitors.


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It’s Your Future


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