JOHN LEWIS

John Lewis

John Lewis

Introduction

John Lewis Partnership (JLP) is a leading retailer in the UK, operating supermarkets and department stores. JLP operates 27 John Lewis department stores, 213 Waitrose supermarkets, an online shopping network, a website and a catalogues business, and Greenbee.com. John Lewis is mainly based in London, United Kingdom and it typically stocks more than 350,000 separate lines of products such as furniture, kitchenware and clothing items. The website, www.johnlewis.com, stocks more than 45,000 product lines focused on household products and giftware. JLP has an online shopping service, John Lewis Direct, which owns about 25% of Internet grocer Ocado. Waitrose combines the convenience of a supermarket with the expertise and service of a specialist shop.

Swot Analysis

Strengths

John Lewis Partnership (JLP) owns two of the strongest retail brands in the UK-Waitrose and John Lewis. John Lewis has been recognized as top for customer service by the UK Customer Satisfaction Index (UKCSI). In the Verdict consumer satisfaction index, January 2009, John Lewis was named "Britain's favourite retailer 2008" while Waitrose was named "Britain's favourite supermarket" in independent surveys by BBC Watchdog and Good Housekeeping Awards. JLP's distinctive positioning of its brands has won the company several accolades and a great degree of loyalty from customers. JLP has harnessed its brand potential to attract more customers, thereby strengthening its bargaining power.

Weaknesses

Waitrose, JLP supermarket business, has voluntarily recalled several products in recent months. In June 2009, Waitrose recalled some of their service counters Aberdeen Angus Beef burgers, because they may have contained small pieces of hard white plastic. Waitrose also recalled its “Oriental supper for two with spring rolls” in May 2009. The product contains fish, shellfish, milk and peanuts, which were not declared on the label and hence posed a potential health risk. The company recalled its chicken curry product for similar reasons in early 2009. Frequent product recalls reflect inadequate quality control and will therefore affect consumer confidence in the company adversely (Farrell 2004).

Opportunities

JLP remains committed to its expansion plans in spite of the recession. Waitrose opened 11 additional shops in 2008, and plans a further 22 openings in 2009. John Lewis also plans to launch a new format shop in Poole in October 2009. Waitrose introduced a new range of its own label products.

Threats

In March 2009, Waitrose launched “essential Waitrose” which is a range of over 1,400 lines comprising fruit and vegetables to household goods, grocery to meat, fish and poultry. Internet shopping is on the rise and has strong growth potential. The online retail sales in the UK grew 14% in April 2009 from a year earlier. Although this is a low growth rate compared to that in the previous years, a double-digit growth rate under the current economic circumstances is a good sign. Online sales are forecasted to more than double to £21.3 billion by the end of 2011. Owing to JLP strong presence in ecommerce, the company is well positioned to leverage the growth in retail internet sales.

Competitors Scenario

The theme of the company “if a customer could ...