Thousands of products will be price-matched under the offer, which GlobalData’s lead retail analyst Zoe Mills says signals a return to its roots.
“John Lewis has been in an identity crisis since it culled its NKU price promise over two years ago. “Its shift in focus to ‘everyday value and quality’ was not enough to contend with its closest competitors across home, electricals, apparel and beauty.
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“This updated initiative will reassure its existing customers on price and make some headway in enticing back lapsed shoppers that had turned to its competitors.”
John Lewis paused its price promise two years ago, after it claimed customers reported finding the offer too complicated and the exclusion of online retailers did not reflect how they were shopping.
The retailer surveyed 5,000 customers with three-quarters sharing that an updated version of the ‘never knowingly undersold’ offer would improve the sense of value for money at John Lewis.
Using AI technology to track the prices at competitors, John Lewis will check prices at 25 high street and online competitors to match any lower prices.
Retailers included in John Lewis’ ‘never knowingly undersold’ offer include apparel retailers:
- Amazon
- Asos
- Fenwick
- Flannels
- Harrods
- Harvey Nichols
- House of Fraser
- Marks and Spencer
- Next
- Selfridges
Customers will be able to claim their money back if they find any items they purchased at John Lewis on sale for less at any of the 25 competitors within seven days. The offer also provides refunds if John Lewis drops its prices within seven days of purchase.
GlobalData believes the update will put John Lewis “on the front foot” in the run up to the busy retail period at the end of the year.
“Now price has returned to its mantra, consumer sentiment surrounding value for money at John Lewis should improve, particularly as the cost-of-living crisis has scarred shoppers’ finances,” Mills noted.
However, she added that limiting the price promise to just 25 retailers may “lessen its impact with shoppers” and adds that the chosen lists excludes some online specialist retailers that consumers are most likely to compare its prices with.
She also noted the inclusion of online retailers in the offer will have a negative impact on John Lewis’ gross margins.
John Lewis Partnership’s Chief Executive Nish Kankiwala said: “This is a significant and critical milestone in the modernisation of our John Lewis customer proposition. It represents further evidence of the retail focused transformation of our Partnership and is a very proud moment for our Partners and an exciting prospect for our customers.”
In June John Lewis launched a 20-piece circular collection across its Home and Fashion divisions.
