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Impact of COVID-19 on High Street Retail Industry: A Case Study of John Lewis and Partners

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Added on  2023/06/11

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This research investigates the impact of the coronavirus COVID-19 pandemic on the declining high street retail industry in the UK, with a case study of John Lewis and Partners. It examines the condition of the high street retail industry before the pandemic, the impact of COVID-19 on the industry, and the tactical strategies JLP needed to apply for survival and future success during the pandemic.

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Impact of the coronavirus COVID-19
pandemic on the declining high street retail
industry in the UK: A case study of John
Lewis and Partners

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Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the topic.............................................................................................................3
Background of the organisation..............................................................................................4
Research Questions................................................................................................................4
Research Aim.........................................................................................................................4
Research Objective.................................................................................................................5
Rationale of the research........................................................................................................5
LITERATURE REVIEW................................................................................................................6
What was the condition of the high street retail industry just before the outbreak of
coronavirus pandemic?...........................................................................................................6
What kind of strategic decisions were taken in the history of JLP resulted the fact that it was
in a relatively favourable position at the time of the outbreak of the pandemic?..................7
What is the impact of COVID-19 on high street retail industry?...........................................9
What are tactical strategies JLP needed to apply for survival and future success during
pandemic?.............................................................................................................................10
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4: RESULTS AND DISCUSSION.............................................................................16
CONCLUSION AND RECOMMENDATION.............................................................................25
REFERENCES..............................................................................................................................30
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INTRODUCTION
Overview of the topic
COVID 19 has created a huge impact on the performance and growth of business. The
crisis has hit the profitability of companies due to which they faced severe loss. All the business
sector is badly hit due to pandemic due to shortage of migrant workers, less demand, reduces
cash flows and supply chain disruption (Lu and et. al., 2021). The crisis has sent shockwaves
throughout global communities, financial markets and dislocated international supply chains. In
order to sustain in COVID 19, organisations are focusing on adapting new working style. Retail
industry is one of the industry which have faced great influence on its business performance due
to pandemic. The crisis has changed the external environment of retail industry (Tang and et. al.,
2021). They have suffered a lot due to pandemic as government imposed lock-down and asked
people to quarantine themselves in order to reduce the impact of pandemic. The lifestyle of
consumers also gets changed in crisis as they are shifting towards online purchase rather than
going into market for shopping. Due to lock-down people are purchasing products and services
online and also they are working by sitting at home (Pagano, Sedunov and Velthuis, 2021). The
retail business has requested government to continue essential business in order to fulfil the food
and daily necessities of people. Retailers of shopping goods and luxury items faces problem in
pandemic. COVID 19 has influenced the retail and shopping industry as many brick and mortar
stores are being forced to close their outlets. In order to cope up with the negative impact of
pandemic, retail industry is identifying new ways for reaching the customers. The retail
organisations that have strong presence on online platforms as well as offline platforms can
respond more steadily whereas retailers with physical stores are struggling to adjust (Islam and
et. al., 2021). Lock-down has influenced the profitability and growth of business as physical
stores are forced to shut down and also they were not able to welcome walk-in customers,
production of clothing has come to a stand-fill as factories were forced to close, people are
shifting towards online shopping and also need for purchasing new garments also get reduced
(Mason, Narcum and Mason, 2020). Thus, the factors which creates an impact on the retail
industry are digital storefronts, sustainable fashion, increased awareness and engagement and
green washing. This research provides detailed information related to the impact of the
coronavirus COVID-19 pandemic on the declining high street retail industry in the UK. In this
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research, researcher will focus on identifying the condition of high street retail industry just
before the outbreak of coronavirus pandemic. It also focuses on determining the impact of
COVID-19 on high street retail industry and strategies require for survival and future success
(Sharma and Jhamb, 2020).
Background of the organisation
The chosen organisation for this research is John Lewis and Partners, it is a reputed
departmental store which was founded by John Lewis. The brand was founded in 1864 with a
motive to provide wide range of products and services to its customer. It is a retail brand that
operates home stores, convenience stores, department stores and supermarkets in UK. One of
the major strength of the brand is it is largest employee owned business that means employee are
the co-owner of the brand. Due to partnership employee enjoy the right of ownership in the
company which differentiate the brand from the other competitors in the world. Company also
have strong online presence in order to attract maximum number of customer towards the brand.
They have their own website which provides detailed information related to company, products
and services. The main purpose of John Lewis is to create fairer and successful business by
encouraging sustainability. Target market of organisation is upper and middle class people with
an age of 30 to 40. The brand is focused on brining positive change, building more sustainable
future and improving lives of people. John Lewis and Partnership ensures that their customer
may feel satisfied with the products and services in order to create strong customer base and
improve the profitability of business.
Research Questions
What was the condition of the high street retail industry just before the outbreak of
coronavirus pandemic?
What kind of strategic decisions were taken in the history of JLP resulted the fact that it
was in a relatively favourable position at the time of the outbreak of the pandemic?
What is the impact of COVID-19 on high street retail industry?
What are tactical strategies JLP needed to apply for survival and future success during
pandemic?

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Research Aim
The aim of this research is to investigate the factors why JLP is one of the survivors of
the coronavirus COVID-19 pandemic crisis.
Research Objective
To determine the status of the high street retail industry before the Coronavirus pandemic
(late 2010s)
To investigate the most important strategic decisions taken by JLP during its more than
150 years history before COVID-19.
To examine the impact of the pandemic crisis on high street retail industry: losers and
survivors.
To describe and analyse how JLP adapted during the pandemic and the vision of the
company about its future after the plague.
Rationale of the research
The main reason for conducting this research is to avail in-depth knowledge about the
impact of the coronavirus COVID-19 pandemic on the declining high street retail industry in the
UK. It also helps in determining the status of the high street retail industry before the
Coronavirus pandemic and also investigate the most important strategic decisions taken by
organisation before pandemic. This research also provide information regarding the impact of the
pandemic crisis on high street retail industry and analyse the ways through which organisation
can survive in the tough time of pandemic. While conducting this report, I will an opportunity to
fulfil my personal and professional objective. I will also learnt about how COVID 19 has hit the
retail industry. It also helps me in determining the strategies which company can use in order to
deal with the negative impact of COVID 19. Moreover, I will also grab a knowledge related to
the company and their action during pandemic.
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LITERATURE REVIEW
What was the condition of the high street retail industry just before the outbreak of coronavirus
pandemic?
As per the viewpoint of Rodgers and et. al., (2021), the condition of high street industry
just before the outbreak of pandemic was growing by offering high quality of products and
services to its customer. The sale of the retail industry was increasingly rapidly in 2010's due to
which the profitability and growth of retail industry increases. For lifting the sales of clothing
and shoes, summer sales, school holidays and warmer weather helps in increasing the sale and
profit margin of high street retail sector. Before the outbreak of pandemic. High street retail
industry focuses on attracting its customer by offering them products according to the new and
latest trends. In 2010, high street retail industry was not so wide they offer limited number of
varieties to its customer. The era brings boom in high street retail industry due to which they
focuses on understanding the customer preference and provides them products according to their
need and expectations. The fashion in 2010 was becoming modern and also improving the living
standard of people. Before the outbreak of pandemic, the store openings are increasing in order
to provide varieties of products and services to its customer. The high street retail industry is also
focusing one expanding their reach to large number of customer in order to increase the
profitability and productivity of business (Heller and et. al., 2019). There are various factors
which influence and stimulate change on high street such as price, quality, quantity and many
others. In 2010, the price of the products were low which attracts maximum number of people
towards the brand. The high street retail industry lay emphasis on providing better quality of
products at affordable price to its customer. Due to emergence of internet, high street retail
industry is growing their business rapidly which helps in increasing the profitability and
performance of business. With the help of internet, industry is reaching to wide range of
audience in order to promote their business and increase the sale of business. Internet helps
industry to create strong customer base by offering them products and services according to their
need and expectations. In 2010, high street retail industry has started to focus on understanding
the needs and requirements of customers so that they can attain business goals and objectives.
The high street retail industry also focuses on following the latest trends and fashion in order to
remain competitive in market.
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The pandemic has changed the way people use high street due to the change in consumer buying
behaviour. With the adoption of purchasing good through online mode the company is market
share shirked before the time of Covid 19 pandemic. The internet sale was raised by 21 percent
as compared to the retail sale of the high street. In-fact when the lockdown was announced it has
largely affected the high street because consumer willingness to buy the product decreases. The
sale of high street shop has declined to 45 percent which was the largest footfall as compared to
past years. The retail sale after the lock down period has jumped to 33 percent. Before the
pandemic to the market share of the company shrink and after the hit of the pandemic it worst
affect the John Lewis and its partners. The tendency of the high street stores has declined which
resulted in lower income and revenue. The survival becomes difficult after the Covid 19 raise.
What kind of strategic decisions were taken in the history of JLP resulted the fact that it was in a
relatively favourable position at the time of the outbreak of the pandemic?
According to Lee and Charles, (2021), John Lewis is one of the largest employee owned
organisation so as employee are not only treated as employee they are called partners. The crisis
of COVID-19 has diminished the fashion industry as due to different lock-down the industry has
shattered. The company has adopted different safety measures in their organisation and this is the
major reason that the organisation was at relatively favourable position at the time of pandemic
in comparison to other competitors. The organisation is meeting risk assessment procedure so
that different risks can be identified and at the same time various measures can also be taken.
The major reason of spreading of COVID-19 is related with transmission and due to this JLP had
to take various decisions so that they can minimise the spread of coronavirus. The company has
adopted practical measures due to which different working activities were initiated in additional
manner (O’Dochartaigh, 2019). The organisation has taken various preventive measures so that
to provide safe environment to their employees and customers. John Lewis partnership has
initiated to use different measures by which transmission risk of the virus has decreased and in
the same manner hygiene standards were also maintained. The company also tracked personal
data so that test and tracing procedure can be exerted. The organisation also managed their
business functions under the COVID-19 protocols so that to keep their customers informed
related with their methods.
The high street retail industry have transformed after the implication of COVID-19 and
this transformation is compounding in every day. The organisation is highly aware regarding

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needs of their shoppers which is important in order to manage long edged business. The
company is investing to their partners and customers which is one of the greatest value and
assisted the organisation to deal with the crisis of COVID-19. John Lewis partnership has
decided their priority to minimise overall business cost so that the organisation can be saved to
bear unpredicted losses. The company has initiated to make partnership with growth aspects so
that unique strengths can be provided to the business such as dealing with needs of customers
(Hewidy and Lilius, 2022). John Lewis partnership has moved online in order to deal with needs
of their customers and the company has used different multi-channels services so that to manage
their business amid COVID-19. Half of the overall sales of John Lewis partnership was
conducted using online methods. Besides this using different advertising policies the
organisation has changed buying behaviour of their customer which is one of the necessary step
in order to align their customers with online shopping (Benziman, 2020). The social media
presence is developed by the organisation which is helping the organisation to manage their
business functions during the crisis of COVID-19.
The JLP owns and operates two of the most loved British retail brands which are John
Lewis and Waitrose partners. It is one of the leading partnership companies which have more
than 78000 employees who are the Co-owners of the business. One of the biggest assets of the
company is that the partners are the social enterprise of the company because the profits earned
by them are reinvested back into the company. The John Lewis and Waitrose partnership has 332
stores which were located across England, Scotland, Wales and island. Through their online
application the company sale it’s product to more than 50 countries. In UAE they operates there
business through the acquisition of licensee and has 13 shops over the country.
JLP has initiated their business as innovation partnership in which the organisation is
considered as the largest retail innovation in which the organisation has enabled different start-
ups and established to pitch their innovative services and products into the business. The
company from its beginning developing new value proposition customers which is one of the
helpful measure for the organisation in which the company is at better stage from their
competitors. The company also very much adaptive in using technology in their business as they
are performing trials in robots which is one of the future steps for the organisation in which the
company was able to deal with the situation of COVID-19. The major objective of the
organisation is to create trust among people so that sustainable future can be developed. The
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company launched their website in the year of 2001 which was a techno friendly step that has
assisted them to manage their market position in the crisis of COVID-19.
What is the impact of COVID-19 on high street retail industry?
According to Aschemann-Witzel, Giménez and Ares, (2020), there are several
restrictions which were imposed on the public due to implication of COVID-19. These are the
restrictions which forced the retail industry to shut down the businesses and face several
consequences in terms of financial and operational losses. The economic crisis were faced due to
pandemic and resultantly the organisations within the sector are facing issues of their survival.
The impact of COVID-19 has given negative impacts to the high street retailer which means that
customers are not ready to invest in such product or services. High street retail industry is
directly related with customers which means that due to COVID-19 lock down the industry is not
able to focus on their customers and due to which overall sales has decreased. During the time of
the Covid 19 pandemic many of the Partners has to change their business model because of the
several restriction imposed by the legal body on the business. One of the partners of John Lewis
that is Waitrose opens up their supermarket store because they are dealing with the grocery and
essential item. Ma of the other partners needs to relocate their stores in the local store of
Waitrose so that they can run their business at the time of pandemic. Infact some of the John
Lewis partners stay connect with Waitrose and becoming the permanent partners of Waitrose. In
the time of Covid 19 pandemic the company adopt the business model of e-commerce where
they are delivering their goods and service through online mode. In recent time various partners
of the John Lewis are earning their income due to the Waitrose and through online selling.
Waitrose has acquired more than 1, 50,000 online orders after they adopt the Ecommerce
business model. Some of the impact of COVID-19 on high street retail industry are
demonstrated as under:
Decreased business performance: The business performance of retail industry is decreasing as
there are huge factors due to which the businesses are not being able to manage their business
functions (Monsen and et. al., 2021). The COVID-19 has impacted the supply chain management
of the organisation in which the retail industry was not able to meet needs of their customers and
this was the major reason that overall business performance was decreased.
Decreased sales: Sales for high street retail industry is dependent over footfall of their customers
and due to restrictions the customers was not able to opt for such product and services. The
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consumer shifted towards necessity due to the implication of COVID-19 and this manner high
street fashion is not considered as necessity. This is the reason that overall sales for the industry
has decreased which results the industry to face its negative time.
Loosing of market share: The global pandemic COVID-19 has lead various businesses to shut
down and face negative time which was not faced ever before. The businesses within high street
fashion retailer have shut down and due to this business are loosing their market identity. This is
the hardest time for the industry as no direct customer was interacted and at the same time lowest
sale was recorded. The retail industry is loosing market share which would be giving future
uncertainties to the industry.
Managing of demand fluctuations: During the pandemic COVID-19 the buying pattern and
behaviour of customer were changed in high manner which means that unpredictable increase
and decrease in demand was seen. The market was marked as red zone due to spreading of the
virus which forced the industry to choose alternative measures in order to continue nominal sales
of their products to their potential customers (Rimmer, 2020). The organisation has loosen up
the ability of predicting demands in which customer perceived value is decreased.
Shoring up of cash reserves: In order to manage the business cash or funds are needed. In
normal course of business funds rotation is a very known term which is followed by the
businesses in order to manage routine business activities. Due to sudden outbreak of COVID-19
this is analysed that the cash flow faced issues and ultimate funds requirement were not been
satisfied by the industry. Cash liquidity is one of the major need of the organisation which helps
the business to manage regular business activities in appropriate manner. Due to the implication
of COVID-19, the retail industry is facing issue of shoring of cash due to which stoppage is seen
over their working capital needs (Shipper and Hoffman, 2020).
Protecting the people: The high street fashion was the industry which was not operated during
the lock-down as this was not considered as necessities. In this view the major issue with retail
industry is to protect their people and to ensure safety measures so that virus spread can be
prevented.

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What are tactical strategies JLP needed to apply for survival and future success during
pandemic?
According to Collin and Whitehead, (2021), there are various business strategies which
are needed to be used by the business in order to minimise long lasting effect of COVID-19 and
to develop future growth opportunities as well. In the context of John Lewis partnership as the
organisation is associated with high street fashion retailer which means that the company is
working in the sector which has faced the maximum negative implications. So in order to regain
the market position and market impact differential measures are needed to be used by John
Lewis partnership and some of them are elaborated as under:
Investing in innovation: In the current digital world innovation is considered as key to success
for the business. With the help of innovation complex business problems can be sorted out. In the
context of COVID-19 as in order to regain market position the organisation is needed to adopt
differential innovation so that to manage business functions (Sun and et. al., 2021). In the context
of John Lewis partnership as the company is managing their business in retail industry so that
company can use differential innovation such as online presence and using AI techniques into the
business.
Responding demands in logistics: E-commerce is one of the major trend which is followed by
retail businesses in order to capture sales and to manage customer base as well. In this manner
businesses are needed to establish such logistics by which demand can be responded. The
COVID-19 has provided disruptions in supply chain management which is one of the major
reason that in order to regain the business position organisations are needed to invest in their
supply chain so that supply and demand can be synchronised.
Changing the business model: Change management helps the organisation to adopt such
aspects by which succession of the organisation can be enhanced (James, 2020). This is analysed
that due to implication of COVID-19 the retail industry has faced their maximum negative time
and for future survival of the organisation business model is needed to be changed so that market
trends can be instigated into the organisation. The John Lewis partnership is needed to rebrand so
that differential customers can be attracted and at the same time market flexibility can be attained
(Gigauri, 2021). With the help of rebranding original market position can be attained by John
Lewis partnership and at the same time quick recovery can be expected by the organisation.
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In the year of 2020, the company has developed their five years partnership plan in which
appropriate quality and value is given and different ideas are added. The company is making
commendable efforts in order to provide affordable quality in value for money prices so that
higher appeal to the customers can be provided. The company has also made various efforts in
order to develop their digital and virtual presence so that one stop solution to customers can be
provided. On the other hand, the company is also making significant efforts in order to manage
zero carbon emission so that to emerge as an environment responsible organisation which is
stepping by keeping sake of the society and environment as well.
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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is the systematic process to analyses and interpret information in
scientific manner. This section helps the investigator to attain answer for two main question
which are type of data need to be gathered and how it will be analysed. This section is very
important because the data analysis and finding part depends upon the type of data selected in
this section. With the help of accumulated data research aim and objective is attained in accurate
manner. The researcher methodology section also helps the investigator to carry out their
investigation in valuable manner (Silverman, 2020). Readers also evaluate the data so that
validity and reliability can be maintained. To gather and analyses the information various
philosophies, approaches, data collection method is used so that appropriate data as per the
chosen topic can be acquired. The main purpose of the research methodology section is gather
and analyses information as per the though and ides of the researcher. Research methodology
also divided in various sub parts which helps in in accumulating data in systematic manner as per
the study. These sub components are discussed below with the help of Saunders’s research onion
framework.
Research philosophy: It can be defined as the belief and principles about the type in which
information about the phenomenon that should be gathered, analysed and used in the
investigation. There are three types of research philosophy which are positivism, interpretivism
and realism. Positivism philosophy is about the types of data which says that social world can be
understood with the help of objective information. Interpretivism philosophy says that the world
is to be understood with the help of subjective data and in last realism is based on both
positivism and interpretivism philosophy (Camic, 2021). It is based on the perception and
assumption possess by the researcher in their human mind. In the current investigation both
positivism and interpretivism philosophy is used to gather and analyze information. The reason
for choosing positivism philosophy is that secondary data in the form of numerical can be
acquired to see the current trend and pattern. Using this the data will be accumulated in cost
effective and time effective manner. The reason for selecting interpretivism philosophy is that
theoretical information can be acquired which helps in attaining aim and objective in valid
manner. Thus, both helped in using information in deeper manner and attaining aim in valuable
way.

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Research approach: Research approach is a detailed planned process which helps in
finding the relationship between the variables with the assistance of testing hypothesis and
theories. It is one of the important sub parts of research methodology which helps in collecting
and analyzing detailed information. Researcher uses the approaches to address their research
problem in deeper manner. There are two types of research approach which are inductive and
deductive approach. Deductive approach is the process of testing and evaluating the hypothesis
on the basis of quantitative data. On the other hand, inductive approach is test the theories with
the aids of qualitative information (Valtakoski, 2020). In deductive approach existing hypothesis
are being tested and in inductive approach new theories are being developed with the assistance
of gathered information. In the current investigation, both inductive and deductive approach is
used to test the theories and formulating new hypothesis. The reason is that it will helps in
attaining aim and objective in reliable manner. The advantage to used deductive approach is it
helps in knowing the effect or relationship between the variables. Deductive approach also takes
less time and cost to test the theories and hypothesis. The benefit to use inductive approach is
attaining objective successfully as per their flexibility.
Research strategy: A research strategy is a plan which contain various step by step action.
Strategies helps in accumulating information by giving direction to the thoughts and ideas of the
investigator. Through the helps of research strategy investigator can conduct their investigation
in quality manner and can get proper result for their investigation. There are various types of
research strategies which are survey, experimental research, case study, focused group, action
research, systematic literature review and many more (Brennen, 2021). Survey research strategy
helps in accumulating quantitative information in large volume by wider population size.
Experimental research is that method which helps in collecting detailed data about the study by
the helps of empirical study. Action research is that research strategy which aids in solving the
everyday problem by identifying the effective solution and answer for the problem. Case study is
one of the popular strategy which collect data for industrial marketing. Grounded theory is used
for collecting subjective data in order to build new theories with the collected and analysed
information. In the current research investigation both survey and systematic literature review is
used for collecting and measuring information (Liamputtong, 2020). Survey research will help in
collecting numerical information in large volume and systematic literature review aids in
gathering secondary information from various source such as books, journal, magazine, articles
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and many more. Through these methods both practical and theoretical data can be gained so that
in depth study can be made.
Research choice: There are three types of research method to collect and analyses
information that are mono method, multi method and mixed method.
Mono method: In this method one type of information is being accumulated. Researcher
either select quantitative method or qualitative method (Braun and et. al, 2021)
Mixed method: In this method both quantitative and qualitative method is being
conducted.
Multi method: This method also uses both type of information, it is the combination of
quantitative and qualitative method. The difference is that later in this method are divided
into segments.
Research choice is the procedure which helps in gathering information as per the chosen
topic. There are two type of research choice which are quantitative and qualitative research.
Quantitative research is the process of accumulating and analysing numerical data. On the other
hand, qualitative research is the procedure of gathering and evaluating non numerical data. the
data which is collected using quantitative is in numbers, facts, figures, values and many more
and the data in qualitative is in words, statement, paragraph etc (Aspers and Corte, 2019).
In the current investigation mixed method is used for collecting and analysing both quantitative
and qualitative information. Through this approach data of John Lewis will be gathered from
various secondary sources but information is in numerical from. With the aid of qualitative
information, they can carry out the investigation in detailed manner so that aim can be attained
appropriately. Quantitative research choice helps in analysing the information in much easier
way and this information is gathered using secondary source (Roberts, Dowell and Nie, 2019).
Time horizon: Time horizon is the framework which helps in identifying the investing
timeline. There are two types of time framework which are cross sectional and longitudinal time
framework. Cross sectional time horizon is the process which gathers data in one go. On the
other hand, longitudinal the name itself say data is being gathered multiple time. In cross
sectional the data is being accumulated and analysed in shorter time and in longitudinal time
frame work data is being gathered from longer time period. In the current investigation,
researcher is using cross sectional time horizon is used (Sileyew, 2019). This is because it will
observe multiple variables at the same time. This time framework also helps in gathering data as
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per the current scenario so that aim can be achieved appropriately. The research question using
this time line helps in answering them in relevant manner and the data is collected just once so
that duplication of the data can be avoided.
Data collection: Data collection is the process of gathering, measuring and analysing the
information. This technique helps in accumulating valid and reliable information using various
sources. Using this method appropriate piece of data is being gathered in systematic manner.
This method is directly linked with collecting valuable information. Data collection method also
hold significant information and also helps the investigator to gather combination of information.
There are two data collection method which are primary and secondary source which aids the
researcher to not rely on one method to gather data as per their topic (Ratnam, 2019). Primary
data is the process of gathering and accumulating first-hand information. In this method data is
directly collected by the investigator. The data which is accumulated using this is not being used
by anyone earlier. So one of the advantage that is obtained by the primary data collection method
is fresh information is acquired so that any irrelevant information cannot be gained. It also helps
the investigator to accumulated up to date information from authentic source. The sources to get
primary information is questionnaire, interview and many other. This type of data collection
method also helps in relying to the data in large manner.
On the other hand, secondary data collection is the method which accumulate second-
hand information. This data collection method helps in collecting past published information
about the topic. This method aids the researcher to gain data in less time as well as cost. This
information can be acquired using various platform and channels. Secondary data collection
method helps the investigator to gain deeper knowledge about the topic. Some of the secondary
data collection method is books, journal, magazine, articles, online site and many more.
Secondary information is being gathered by some other researcher but used by multiple
investigator in their research. This also helps in identifying the gap between the various research
(Kottner and et. al, 2020).
In current investigation researcher has used secondary data collection method. Using this
method quantitative data is accumulated from the John Lewis. The source for collecting
secondary data is online site, articles and company’s original website. This method is used
because it will help them to gain deeper insight about the company financial performance by
acquiring past and present data of the company. The data which is collected in this are gross sale,

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operating profit, number of employee and many more of the John Lewis. The data which is
gathered is between 5 to 10 year.
Data analysis: Data analysis is the technique of inspecting, cleaning, analysing and
evaluating the data. This process helps the investigator to evaluate raw data in order to assemble
useful information. Data analysis is divided into two parts which are frequency distribution
method and thematic analysis method. Frequency distribution is the process of evaluating and
measuring numerical information. This method is quite easier to use as less knowledge is
required to analyse the raw information (O’Callaghan-Gordo and et. al, 2019). Using this
technique data is presented in the form of table, charts and graphs. Thematic analysis is the
procedure to evaluate and inspect non numerical information. This method is used when deeper
insight is being made on the raw data. in current investigation, researcher has used thematic
analysis method because it helps them to evaluate qualitative data as well as quantitative data in-
depth manner. the data is being represented in theme so that aim can be attained in deeper
manner.
Sampling: Sampling is the method to take out sample from the population. There are two
sampling technique which are probability sampling and non-probability sampling. In the current
research sampling method will not be used because secondary data is being gathered in
qualitative manner. The data will be the financial information of John Lewis so there is no
respondent.
Ethical consideration: It is the set of belief and values which is being followed by the
investigator while obtaining information from the society. Ethical consideration helps in
conducting the investigation in ethical manner. the ethics which need to be obey are honesty,
openness, transparency and many more (Robertson, 2021).
Validity and reliability: The current research is valid and reliable as the data is being gathered
from the authentic website of John Lewis which provide up to date information about the
company finance (Bull and et. al, 2019).
Research limitation: In the current research certain limitation which is faced in the research
is collecting data in authentic source. As secondary data is being collected from various source
so it become challenging to select and choose authentic source. Another challenges which is
faced is limited knowledge about the topic which affect in formulating aim and objective
ineffective and efficient manner (Timæus and Moultrie, 2020).
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CHAPTER 4: RESULTS AND DISCUSSION
A) Extract and aggregation of Income Statements of John Lewis Partnership, years 2012-
22 ended January, made by the author.
The below income statement of the John Lewis and Partners of the financial records of
from the year 2012 to 2022. In the below statement, the gross sales of Waitrose are £ 5,400.40,
whereas it has hiked up every year consecutively. The overall profit in the year of 2012 was
£136.2 and in year 2013 was 101. Further in the year 2015 the profit was £101.6 and 143.5 in
year 2016. The sales of the company are having been increasing at a steady rate, it is showing the
potentiality to grow more. The company is using its resources effectively. The profit of the
company has been a curvy slope, it is increasing and decreasing every following year which is
not a good sign and also the profits have been continuously falling, they earned the highest profit
in the year 2016 and after that it has been falling really hard while the company suffered losses in
the recent years. The company's profit dropped to an all-time low in the year 2018 immediately
after company earned the highest profits. The partnership bonus was being the most in the
starting years while it dropped in the final years. The company’s profits have been decreasing
because of which the partnership bonus has dropped in the recent years. This shows that the
company is not performing well, the resources are not being used efficiently. The policies and
strategies needs to modified and the deviations should be taken care of fast as possible otherwise
the company will suffer huge losses in the upcoming years. The management should find the
problems and suggest solutions to those problems.
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B) Comparison of Sales and Profit / Loss of John Lewis Partnership, in the years 2012-22, based on the spreadsheet above, made by the
author.
If compared the above graph of the organisation, it can be assessed that the sales turnover of the partnership sales in the year 2012 is
£8,729.50, which has been increased up overall of Waitrose and John Lewis consecutively till now. Now, if compared the sales figures from
profit, the profit generated by both the partnership firms is much less compared to the revenue generation. It means that the expenses of the
company are very much which needs to be lowered down. Overall if compared then the profit before bonus, tax and exceptional item were £
353.8 in the year 2012. It started diminishing from the year 2015. But the major declination in the profits occur in the year 2020 due to the
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impact of Covid – 19. Now if evaluated, the figures of Profit or loss for the year then it can be seen from the graph and the income statement
provided that in 2012 it was £ 136.2 and it declined till the year 2014. Then in the year 2015, it was £ 143.5. and with the decline in the profit of
the whole year it became only £ 108.4 in the year 2020. It put a major impact on the performance of the company which has hikes up and then in
the year 2021 it declines and incurred a loss of £ 452. This was majorly happened due to the impact of Covid – 19 and had had a major influence
of the performance of the retail industry. In the year 2022, it was 67.8, the loss had slowed down compared from the previous year. Because the
shutdown position during the Covid has impacted the position of the business of JLP.
C) Comparison of Profit / Loss and Taxation and Partnership Bonus of John Lewis Partnership, in the years 2012-22, based on the
spreadsheet above, made by the author.
From the graph, it can be concluded that profit of the firm is highly fluctuating with 136.2 in 2012 to a decrease in 2013 with 101. Then
increasing from 2015 to 2017 for 2 years with highest profit in 2016. Another massive decrease with 77.0 in 2018. Again with a small inclination
of 77.3 to 108.4 in 2019. But the massive decline occurred in 2020 with a loss of -452.6 due to the solid hit faced by the businesses, economy by
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the COVID-19 pandemic. This was totally due to the effects of the restrictions and problems of COVID-19. The company improved their
position in 2021 in comparison with a loss of -67.8. The taxes paid by the company are varying with respect to their profits of each year. With
the company in years it is earning higher profits is paying higher taxations and the years of low profits are resulting in lower range taxation
amounts. The maximum amount of tax was paid in 2016 as the highest profits was earned in that year. In 2020 the COVID-19 hit on the business
lead to it paying the taxations of 65.2, the highest among all the years. The bonus for the year in 2012 is in negative which shows that there was
no profit for the business and hence was not distributed among partners. From the years 2013 to 2021 the bonus to partners has declined over
time due to the decrease and the constant fluctuations in the profits of the business. The one year that was totally separate from this calculation
was 2020 due to COVID-19 pandemic. As this year led to no distribution of bonus to partners as the company business and operations were hit
badly by the pandemic.
D) Comparison of Total Partnership Sales and Number of Employees of John Lewis Partnership, in the years 2012-22, based on the
spreadsheet above, made by the author
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The total partnership sales of the companies have been increasing starting from year 2012 to the year 2021. The sales have impacted the
number of employees with the company in the respective years. The sales increased from their past numbers showing that the workload of the
company has increased respectively. Although, the increase in the number of employees is not continuous as of sales. The employees with the
companies was maximum in the year 2015 and then has diminished from 2016 to 2021. The decrease in the number of employees before 2020-
the pandemic time period shows that the company had cut-down on its employees for cost cutting and removing those who were not working to
the full capacity and were not fulfilling the company and its requirements. But the employee deduction after 2020 is mainly due to the absence of
workload and the profits with the company to pay for the employee salaries. The employee numbers with respect to partnership sales show the
amount of people company employed to fulfil for its revenue generation and operational working. The deduction although benefited the
company in cost cutting with respect to employee salary and gave them the margin of monetary amount that can be utilised in company
operational activities.
E) Performance of JLP and Waitrose in the Total Partnership Sales, in the years 2012-22, based on the spreadsheet above, made by the
author.
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The gross sales of both the companies have been increasing at a good pace but sales of Wait rose surpasses JLP in the sales growth. Wait-
rose's sales have increased by approximately 2000 pounds while JLP's sale increased by 1600 pounds. The working efficiency of Waitrose is
better, which also indicates that the company has better management, cost effective production, and sale price is appropriately determined.
Between the partners, if one company’s sales went down the other company managed to get hold of the total sales and keep growing. The
company is using the labour and raw materials to its capacity which is visible in their gross sales.
F) Calculation of Standard Deviation of Profit in 2017-22, based on the Income Statements of JLP, made by the author
Financial Record for the
year ended January. All
values GBP millions 2017 2018 2019 2020 2021 2022 Total (Σx)
Profit / (Loss) for the year
(x) 353.5 77.0 77.3 108.4 -452.0 -67.8 96.4
Mean μ=Σx/n (n=5) 16.07
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Deviation x-μ 337.43 60.93 61.23 92.33 -468.07 -67.80
Squared Deviation (x-μ)² 113861.25 3712.87 3749.52 8525.44 219086.40 4596.84 353532.34
Variance Squared
Deviation / n 58922.06
Standard Deviation=
SQRT(Variance) 242.74
Mean-S.D -226.67
Mean+S.D 258.81
The standard deviation of the company is very high which means that the company is deviating a lot from the average and is not making
changes to overcome these deviations. The company needs to modify its policies and change its strategies to stay on target and achiee
organaissational objectives with minimu standard deviation.
G) Calculation of Standard Deviation of Profit in 2012-22, based on the Income Statements of JLP, made by the author
Financial Record for the
year ended January. All
values GBP millions 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total (Σx)
Profit / (Loss) for the year
(x) 136.2 101.0 101.6 143.5 223.2 353.5 77.0 77.3 108.4 -452.0 -67.8 801.9
Mean μ=Σx/n (n=5) 72.90
Deviation x-μ 63.30 28.10 28.70 70.60 150.30 353.50 77.00 77.30 108.40 -452.00 -67.80
Squared Deviation (x-μ)² 4006.89 789.61 823.69 4984.36 22590.09 124962.25 5929.00 5975.29 11750.56 204304.00 4596.84 390712.58
Variance Squared
Deviation / n 35519.33
Standard Deviation=
SQRT(Variance) 188.47
Mean-S.D -115.57
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Mean+S.D 261.37
The standard is comparatively low from 2017-22 which means that the deviation from 2012 is better than that of 2017. But still the
deviation is high, the company needs to figure out its policies and try to mitigate the risks involved and analysing the factors that are causing
these deviations formulate new policies and strategies.
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CONCLUSION AND RECOMMENDATION
Conclusion
It is being concluded from the above gathered information that Covid-19 has an adverse impact on the high street industry which has
resulted in decreased profits and growth in the business market. Before the pandemic outbreak, the sale of retail industry has increased as people
buy new things according to the changing market trends and preferences. The high street retail industry mainly focusses on delivering good
quality products and services to the customers on the basis of their needs and demands. The internet has changed the scenario of the retail
industry for the customers in the market as it helps in increasing sales and growth of the organization in the competitive market. It is very
important for the retail industry to produce innovative and creative products for the customers in order to increase the level of profitability and
sales in the business market. Internet has provided the retail industry with many options like selling products through online website, promoting
products and services by social media and attract customers by producing quality products for gaining more customers for purchasing. But the
pandemic has affected the services and operations of the retail industry as they need to change their style and working on the basis of the
changing behaviour of the customer. Internet helps the retail industry to change their strategies about selling the products on online stores in
order to increase their sales and for attracting customers to buy their products in the ease of delivery from their home.
The situation of pandemic has severely affected the overall growth and productivity of the company as a whole. With the complete lock-
down across the world, the company has resulted in decreasing the sales of products and services in the business market and it also affects in
reducing the number of customers and market share. For increasing the sale of products and for attracting the customers for buying the products,
the company adopts various safety measures to reduce the effect of the virus. The company is focusing on building risk assessment operation in
order to mitigate the effect of virus risk and for taking favourable measures for dealing with the pandemic situation in a more effective way. To
preventive measures are taken by the company to reduce the spread of virus in order to safeguard the employees and customers interest. The
organisation mainly focus on building a healthy and hygienic environment where employees feel safe while performing the operations of the
business. They track the health of their employees so that the transmission of virus can be reduced by checking upon the current status of them.
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They also focus on managing their activities of business according to the Covid-19 protocols so that proper working environment can be
maintained for better productivity and profitability. In order to survive in the pandemic situation, the company is continuously seeking about the
needs and wants of the customers so that they produce attractive and innovative products. The company adopts technology for gaining more
number of customers and market share in order to increase the sales of goods and services in the highly competitive business market.
The Covid-19 has impacted the growth and success of the company as the retention of customers gets reduced to buy products and
services in the business. The government has possessed several rules and restrictions with the effect of pandemic across the world such as travel
restrictions, social distancing, lock-down situation, work from home, quarantine and following all the related protocols. These restrictions have
resulted in shutting down the businesses as they are not getting any profits because the customers are not availing the facilitate and are
purchasing less products from the retail stores. Because of the Covid-19 situation across all over the world the company is facing the issue of
decreased sales as they are not receiving that interest of the customers for buying the products. The company has changes their selling patterns
and are producing goods on the basis of the changing behaviour of the customers which helps in gaining the trust and morale of employees for
better development and growth. For retaining in the retail industry it is important for the company to adopt new technological changes so that
they capture large market share and more number of customers for buying the products like clothing, shoes, and many more. The performance of
business gets reduced as the supply chain management is not working properly in the time of pandemic and they are not receiving the products
for delivery in the market on time. The global pandemic has also affected the market share as this affects the growth of the customers for
perceiving more customer value and experience.
For reducing the effect of the pandemic situation, the company adopts several strategic methods that results in reducing the effect of the
Covid-19 for increasing the sales and growth of the business in the market. The company adopts various strategies that helps the company in
retaining its market share and large number of customers for purchasing the products again. Adoption of new technology helps in selling
products online by new creativity and innovation so that customers can be retained for buying the products and services of the business
organization. By using AI techniques company is trying to build more effective system in the business in order to retain the customers. E-
commerce is gaining proficiency as it helps the company in giving more sales and customers by promoting products over the online portal
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through social media or by controlling the factors of the pandemic. By building strong logistics the company can build sustainable demand for
the available products and this helps in increasing the experience and satisfaction of customer for more growth and reliability. By changing the
market pattern and demand for the productivity and growth of the company as it helps in regaining the market flexibility. Producing hygienic
products helps in attracting more number of customers as they are more health oriented and customised for increasing the level of sales and
profitability in the business market.
Recommendation
For overcoming the impact of the Covid-19 in the retail industry, the company needs to focus on delivering products and services for the
growth and productivity in the highly competitive market. As the pandemic has affected the growth and sales of the retail industry, the company
needs to follow all the protocols related to the Covid-19 in order to operate the functions or activities of the business in an effective and smooth
manner. Due to travel restrictions, lock-down, social distancing, the organisation needs to focus on building strategies that helps in increasing the
sales in the time of Covid-19. It is important for the retail industry to develop productive strategies that helps in gaining the market share and
customer growth in the market back as due to complete lock-down the business is shut down for some time and has to suffer a huge loss. It is the
responsibility of the business manager to think positive and effective ways that helps in attracting the customers for better buying the products
like clothing which people were afraid to invest. With the fear of getting infected with the virus, the company needs to adopt several measures
that helps in gaining their trust for the services that they are providing for getting the position in the market back. Complete lock-down across the
world has restricted people to move out of their houses and this has affected the sales of their stores as no customer is visiting for buying
clothing or shoe product from the traditional store. It is recommended to the organisation that they need to adopt several strategic ways so that
sale and customer of the company can be increased and retained. These recommendations are defined below:
Adopting online portals and AI methods for selling their products and services in the market which results in attaining more growth and
success in the competitive market and the situation of the pandemic. The company needs to adopt various AI methods that helps in promoting
their products through online software like by online company website, social media and for enhancing the sale of products as people can not
move out their home and are restricted to stay inside in order to reduce the effect of the virus. It is important for the company to build attractive
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and creative products which helps in deriving customers for the effective services in the business. The company needs to increase their online
presence so that they deliver products to the customers at their door steps with easy and reliable matters which gains importance in managing the
effective approach. AI techniques are more relevant as it helps the company in making technological changes easily and helps in building online
websites easily which also offers discounts to the customers so that they invest their many on buying clothing items also.
Maintain a hygienic and healthy environment is considered as the most important recommendation that helps the company in dealing with the
changes and situation of the pandemic easily and effectively so that no problem can occur. Healthy environment helps in employing employees
back in the company as they gets satisfied with the working place that they are following better practices to reduce the effect of the virus. The
company needs to promote hygienic and healthy culture which helps in attracting customers for purchasing the following goods and services in
order to gain high success and productivity. It is necessary for the company to put boards outside their stores that no person is allowed without
mask and if someone is not feeling well than do not enter the store without permission. The company needs to also train and guide employees
bout the seriousness about the virus that it is transferable from one person to another so it is important for them to follow all the rules and
regulation related to the Covid-19.
Cleaning and disinfection practices are must for every company as it is important for them to sustain in the business market in he time of
Covid-19 pandemic. The company needs to adopt effective practices for maintaining a clean working culture so that employees feel safe and
secured while working for delivering products to the customers. The employees must sanitize themselves if they are working in the company as
it helps in safeguarding their health and results in gaining more customers as they are more customer oriented. The employees must wear proper
gloves and mask so that in case they touch something which helps in building a healthy working environment. Disinfection practices helps in
bringing high satisfaction among the customers as well as for the employees as this helps in regaining the market share and repositioning of their
responses for the growth and success of the business.
Health and safety policy is mostly recommended for the company as it helps in delivering better prospectus of growth and reliability for
maintaining the functioning of the business operations. It is important for the company develop health and safety policy for all its employees
because it helps in safeguarding their interest and also helps in increasing their level of motivation yo work in the company more dedicatedly and
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confidently. This helps in making the correct description about the policies that supports the health of people as it specifies about the amount of
the three health if they get infected in the virus. The health of employees is very important as they are only persons that helps in achieving the
aims and objective of the company in an effective and proper manner. The company must focus on delivering best services the customer in the
time of Covid-19 as it helps in maintaining the growth and productivity of the business.
These recommendations help the company in fighting through the virus as it effected the life of various people and this has resulted in regaining
more growth and productivity. The company needs to socialize its products and services so that customers invest money in buying things for
their own satisfaction and relaxation.
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