This is a sample of the insight report that was sent out to our subscribers earlier today. Part 2 of our visit is tomorrow:

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The rest of the email features 25+ images detailing the issues we found when visiting the store; with challenges around trading, merchandising, store standards and general retailing as a whole.

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Our subscribers get part 2 tomorrow, this contains the Baby category, which was an absolute disaster, from start to finish.

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Subscriber content below:

This is part 1 of a 2 part epic looking at John Lewis, I'm a fan of the adage that whilst this visit is just one store, it's one store too many.
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It may not be reflective of the entire chain but it also may be the case that every store has varying challenges in similarity...
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Either way - there are so many own goals here that you wonder if the partners and business are aware of their burning platform? They can't hope to keep closing stores down and manage diminishing returns, including navigating customers to a website that often has lines out of stock and where the logistics look dangerous in terms of margin.
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Around Christmas time, we ordered a number of things next day with DPD for John Lewis, numerous packages / Toys / whatever else we'd ordered. They arrived with the same driver, but in 6 different packages.
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Which means 6 different charges for the business. Multiply that by the volumes they will be doing and they are actively sending customers towards a channel that actually is harmful for margin. Accelerating their descent.
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Of course, self help means they can alleviate such problems, but who is looking at any of this?
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My experience with retail is that no one cares about the marginal gains, the 0.25% which when combined with a huge number of other 0.05% / 0.15% gains adds up over a year to a fair percentage of improvement.
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Real, tangible improvement in the day to day that improves partners/colleagues lives is a must, but no one cares about it.
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It's all technological gains so they can show the media around, or introducing some app or other software improvement to make things quicker but it never actually translates to the bottom line.
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In the world of LinkedIn and the car salesman like tactics of people selling themselves, I wonder, does this drive the wrong sort of improvement?
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It's far better to develop an app, or highlight a huge number saved on cost by removing staff with little care around whether it's sustainable or will ever stand the test of time, than it is to make a 0.05% improvement to the business and know that
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a) It works
b) Whilst small, there's plenty more to go at.
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But in the short term nature of the sector, people are not blessed like this and the panic sets in, but John Lewis are not a PLC, they tell us time and again they're a partner led business, a democracy, different ways of doing business. Better for everyone.
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They're given a free pass with elements like Government support, business rates relief was given unilaterally at the start of the pandemic and Waitrose, like other retailers, benefitted from not having to pay the monies over.
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Many retailers paid this back as they'd had a good year, Tesco kicked this off of course and despite the year being rocky in terms of margin mix and profitability (extra costs incurred etc), the rest followed suit.
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The Co-Operative haven't paid their rates back given the costs they incurred, that is their right of course. It's another business that is run differently and had it been a few years ago, you could argue that the taxpayer was propping up the business.
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However they're in a far better place now, and they were also affected by the closure of city centres, non essential trading and working from home orders, impacting their estate significantly.
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For John Lewis, they were affected by the closure of non essential for sure.
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They also had 300 odd Waitrose stores trading throughout, offering click/collect for the John Lewis business and ensuring that their wheels kept turning.
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But they haven't paid the monies back, their financial status is pointed towards as a key reason, but this is self inflicted.
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Their botched changes under the former leadership, continued strategical failures, closure of stores that are very new - highlighting a major issue with expansion and hurdle rates on stores.
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The list goes on and on. But it's morally wrong for any business to keep government support in this regard, surely?
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Especially one like John Lewis that is so different to the rest of the evil PLC, profit driven businesses in retail. They tell us about their ownership model, how great it is. The customers haven't enquired about it particularly....
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It's a good thing, no doubt. But it has clear shortcomings. As we continue to see.
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Just imagine if Tesco were refusing to pay their rates back after the big dividend paid out post the sale of the Far Eastern businesses. Imagine the headlines.
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Folk are just looking the other way here.
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JL badly need to pick up the pace, their strategy with "Anyday" looks like some activity to show that lockdown wasn't wasted with everyone working at home.
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It's also so confused, given that it ranges from £4 tea-lights (serving to show how expensive they are versus IKEA et al) to a Baby's Cot at £180.
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Why? What is the point?
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Does research show that the John Lewis brand meant nothing? What is this brand supposed to do? Are people going to John Lewis to save money? No! They're going for an experience and to be looked after with quality product, with partners that care and shops that are moderately well presented and offer an element of idealism.
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Not for a stencilled orange logo and the stereotypical wooden display kit to show how low price this range is (when it turns out that actually, it isn't low, at all).
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An example of the "Anyday" brand used on tea-lights and then on a Cot at £180 is just crazy.
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What are they doing?
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Branding then moves to the territory of the Aldi biscuits example I hold up a lot. Their biscuits are good, Fox's quite clearly.
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However the packaging still reflects Aldi alongside the branding of course. There's still that stigma around giving these as gifts, or indeed, sharing them with guests.
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Whereas the leading brands are ideal for this, they put a lot behind their brands, which is why they're imitated too. Discounters drop in far more brands around Christmas and Easter Egg time now for a good reason.
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Discounters also range a number of brands permanently, showing that brands clearly have a place, especially where own label can't replicate.
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So why do John Lewis essentially punch themselves in the face here?
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They are seemingly put their value / everyday branding on numerous lines where there's no need to, in all manner of categories. Baby (we'll cover tomorrow) is a great example. Just so unnecessary.
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It's a new brand too! Where's the equity for customers with Anyday? It\s just beyond belief.
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Anyhow - on with the visit - part 1:

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(Follows c.20-25 pics and insight and thoughts on what we have observed).

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