Retail Trends in London and John Lewis Retail Company

This report analyzes the retail trends in London and John Lewis Retail Company. It provides an overview of the retail industry, causes of fluctuations, and SWOT analysis of the company. The report also includes an action plan and recommendations for the company to implement efficiently and make modifications in their marketing plans and strategies.

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JHOn Lewis and Partners
Inquiry Report
Report
Student
8/13/2019

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Executive summary
The retail industry has played a crucial role in development as well as raised the standard of
living of public. This industry has made all the products available under one roof. However, the
retail industry has been undergoing some fluctuations and its impacts can be observed across
different nations. Its major effects were seen in London, wherewith the emergence of the e-
commerce industry, the era physical outlet has diminished.
To get in-depth information about the retail industry and its impact, the introduction about the
retail industry has been provided, where the overview of John Lewis Retail Company has been
given along with the SWOT analysis of the company. The Trend is analyzed through primary
and secondary data. Besides this action plan and recommendation has been provided so that
company can implement efficiently and make modification in their marketing plans and
strategies. Therefore, the focus of the report is to analyze the retail trends in London and John
Lewis Retail Company.

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Contents
Introduction....................................................................................................................................3
Overview Of Retail Industry.....................................................................................................3
A. Overview Of The Retail Industry And Trends In London................................................5
Causes........................................................................................................................................6
B. The Company........................................................................................................................6
SWOT Analysis Of John Lewis And Partnership.................................................................7
Secondary Data.....................................................................................................................9
Analysis................................................................................................................................10
C. Recommendation................................................................................................................10
I. Quality Production:..............................................................................................................10
II. Competitive Pricing:...........................................................................................................11
III. Efficient Management System:........................................................................................11
IV. Expansion On The Largest Scale:..................................................................................11
Action Plan...............................................................................................................................12
Conclusion....................................................................................................................................13
Bibliography.................................................................................................................................14

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Introduction
Overview Of Retail Industry
Retail is a procedure of trading goods and services to potential consumers through different
mediums to generate sales. According to Philip Kotler, Retailing is a combination of the
activities performed to supply goods and services to the final consumers. The person or the
company that makes the products available in the market is known as retailers. They are
considered as an integral part of the distribution system as they act as a mediator between a
wholesaler and the customer. Retailers generally purchase commodities in large quantities from
the wholesalers or the factory outlet and further trade them at competitive prices so that they
can fulfill the needs and demands of the costumers in the right place and at the right time.
Department stores, retail Outlet, small market stalls, personal selling, and upcoming online
trading are some of the methods of conducting retail activity (Niemeier et al., 2013).
In 2017, the value of the retail industry was USD23, 460 billion and by 2023, it is being
forecasted that it will show a tremendous growth of USD 31,880 billion (Mordor Intelligence,
2019).
However, this sector is undergoing some fluctuations in the London business environment and
has affected well-established Department stores like John Lewis and partners. Therefore, to
understand the London retail industry comprehensively, the study is conducted over the retailing
industry of London, which is further discussed in the report.

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Figure 1: Global Retail Index
(Mordor Intelligence, 2019)

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A. Overview Of The Retail Industry And Trends In London
In developing countries like Europe, the retail industry is highly advanced and competitive.
Retail outlets like departmental stores, fashion stores, and mini stalls have become an integral
part of London, as the industry's 40% revenue is significantly contributed to the development of
the economy. With the establishment retail industry in London, there has been up-gradation in
the lifestyle of society. Moreover, it has created 4, 00,000 jobs for the citizens of London. In the
entire retail industry, clothing retail outlets have the largest market share and provide 78,000 job
opportunities to the native people of London (Deloitte, 2019).
However, with the advancement in technology and the development of a new method of
retailing, the trend of physical retailing has faded. According to the statistic of economic activity
that occurred in 2018, it was analyzed that up to 50,000 jobs had vanished only with a span of 6
months. Moreover, according to PricewaterCoopers, the impacts of turmoil can be observed
across Europe, in which London was the most affected region (Lopez, 2018).
Figure 2: Retail business growth in high street areas

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Source: (Office for Nationl Statstics, 2019)
Causes
One of the major causes of such downfall of physical retailers is that modern technology has
opened an opportunity for e-commerce companies due to which the trend of window-shopping
is disappearing. In the contemporary world, the internet has become a crucial part of
everybody's lifestyle. Moreover, online purchasing has become an upcoming trend, which is
shaping the future of the retail industry as today's generations prefer to spend their time surfing
social media. Besides these social networking sites like Pinterest, Instagram and Facebook
inform individuals about the latest trend in the clothing industry, new books, creative furniture,
which can be purchased from companies sites (Thomas & Palumbo, 2018). This has increased
the competition for the existing retailing companies Moreover, for the physical outlets, survival in
the retail industry has become difficult due to economic instability, high rental rates, lack of
customers' footfall and availability of its substitute in the market.
Hence, it can be said advanced technology has challenged the traditional methods of retailing
and has created outstanding opportunities that have increased the competition level for the
present retailers and has assisted them in developing an effective market strategy for giving a
competitive edge to their rivals.
However, this tech trend has adopted by the existing retailers and to attract potential customers,
they have brought modifications in the marketing strategy. Moreover, successful retailer
company like John Lewis and Partnership has challenged online retailing companies in London
and started their online services in 2014, where they launched all the company products so that
customers can buy product anytime Even if the products are not available in the physical store,
customers can easily avail from the website. Thus, the scope of physical stores has become
broad due to the effective utilization of technology (McCarthy, 2017).
B. The Company
John Lewis Company is the largest chain of a department store that is operating from the last
150 years in the capital of Britain, London. Spedan Lewis opened its First retail outlet in 1864 in
Oxford Street of London, and today it markets its product from 52 stores and through its online
store - johnlewis.com across Europe (John Lewis & Partners, 2019). It deals in 4 product

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categories: Home decor, apparel, Electronic device, and personal care. Besides this company
provides companies personalized credit cards through John Lewis Finance (John Lewis
Partnership, 2019). Along with its subsidiary Waitrose and Partners, the largest food Retail
Company, John Lewis Partnership supply a supreme quality of food service as they are quality
conscious and strive hard to provide premium services to the customers. Currently, with more
than 83000 employees, John Lewis Partnership has been providing premium services to
potential customers. In 2018, the company has done significant growth and has earned revenue
of £10.2 billion (Partnership, 2018). The motto of the company is to:
Do right: The Company understands its corporate social responsibility and performs according
to the ethical code of conduct (John Lewis Partnership, 2019).
All or Nothing: It strives hard to provide the best services to the customers.
Give More Than You Take: The Company acts as a trendsetter and commits to offering new
products so that the customer receives trendy products, every time they visit the store or
company's website.
We not me: Company empowers teamwork, and promotes the interest of every employee in the
organization thus maintain a positive working environment in an organization.
SWOT Analysis Of John Lewis And Partnership
To analyze Strength, Weakness opportunities and threats of the company, primary and
secondary data is collected. To collect the primary data interview-based survey was conducted
on the staff of the company where the participants were asked questions on the working
experience of the company. This survey was conducted on a random base where the 50
employees were selected randomly according to their performance. They were asked 8
questions which include the survey in the context satisfaction, issues they are facing and scope
of improvement.
Primary Data

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QUESTIONS FEEDBACK
Q1.Are you satisfied with your job?
Q2. What kind of problems are you facing while performing your duties
and responsibility?
Q3. What steps can be taken by the company to improve the working
environment?
Q4. According to your opinion, what is the current market position of the
Company?
Q5. Does the company ethically conduct its functions?
Q6. What you like about this organization and do you see your future
growth with the company?
Q7.Do managers involve you in the decision-making process?

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Q8. How frequently do you receive recognition from your manager?
From the interview, it was concluded that 90% of the employees said that they are satisfied with
their job. Employees further stated that John Lewis and Partnership is a great company, which
provides a positive working environment to their internal stakeholder and practices democratic
leadership in the system (Partnership, 2018). They are good paymasters as they ensure the
interest of their employees and along with salary; they provide another incentive like free
holidays, discount coupons that drive the employees to work harder. More than 50% of
employees responded that due to inflexible working hours, lack of management in the
organization and growth opportunity office politics and sometimes unable them to give their
100%. Many employees' advice that the company must promote the efficient working system in
the organization and should maintain transparency while dealing with their customer so that
customer satisfaction can be achieved effectively and efficiently.
Secondary Data
Secondary data means that data which is gathered by the other party rather than the user. It is
the most efficient method of collecting the information, as it is convenient as well as economical.
It provides accurate information to the researcher, which can gather through the different type of
sources like social networking sites, magazines, and newspaper.
After the study, it was identified that John Lewis Retail Company effectively conduct their
operations through their own retail sites. Besides this, company is focused on the
accomplishment of their ethical responsibilities while achieving their long-term objectives.
Along with this, in 2018, company, majorly invested in the commercial estate and finalized total
218 projects in which 127 projects of multifaceted scale were in its subsidiary
company( Waitrose shops ) and other 91 ventures in John Lewis Shop. The company is striving
hard to make the experience of the customer more valuable by improving the technological
system of the company. The motto of the company is to earn profit along with establishing

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positive relations with the customers. This year, the company had adopted effective pricing
strategies to attract the customers on large scale. It lowered the rate of its premium essential
items of Waitrose, thus increasing the sales in bulk (Partnership, 2018).
Analysis
1. Strengths: It is the largest department store, which holds a great market share in the
retail industry, and has a strong online presence. The USP of this company is its
partners. Along with its 83000 employees and other partners, the company is able to
adapt the advanced technology and through its website, it is offering a wide range of
products (London Economics Plan, 2019).
2. Weakness: Lack of international expansion limited its development in a particular
geographic area and fluctuations in its profitability are the two major reasons, which are
threatening the stability of the company (Deloitte, 2019).
3. Opportunities: With the entrance of digital marketing in the industry, there has a given
creation of ample opportunities for physical retailers like John Lewis and Partners to
commence its business activities through an online platform and offer stylish and trendy
products to its potential customers. Moreover, as the customers are becoming health
conscious, they prefer organic and healthy low-calorie food, therefore it is an opportunity
for the company to start a new venture (John Lewis Partnership, 2019).
4. Threats: From the above, it can be analyzed that digital platform has not only brought
opportunities but threats also as it has opened gates for retailers to trade their products
through social networking sites which have increased the completion in the retail
industry. Moreover, due to the US-China trade war, John Lewis and Partners have major
losses in procuring raw material, which has threatened its stability in the market
(Kollewe, 2018).
C. Recommendation
Due to adverse impacts on the retail industry, John Lewis and Partners also observed
fluctuations in their own company where its profit rate decreased from 99%. However, the
impacts of such fluctuations can be reduced by the bringing changes in (Gates, 2018):
I. Quality Production:

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Maintaining the quality of the product is a prior responsibility of the companies, which should not
be comprised. John Lewis and Partners must provide quality products to the customers so that
they receive consistent products. Besides this, while offering products through their website, the
company must provide after-sales services to their clients and should connect with them so that
they can satisfy their needs and wants efficiently and effectively (London Economics Plan,
2019).
II. Competitive Pricing:
Due to a shift in the demand of the customers, and the entrance of new competitors, John Lewis
and Partners is facing a downfall in the demand for their products. However, such situations can
be avoided by supplying the best quality of products and economical prices. While formulating
this strategy in the system John Lewis and Partners must identify the pricing policy of other
companies and set their prices accordingly. Besides this, the company must come with lucrative
offers like off-seasons, festival discounts to attract the attention of the customers. Moreover, to
give competition to other rivals, the company must introduce new products, every 15 days so
that, customers do not lose their interest. This strategy will assist in increasing the demand for
the products (Office for Nationl Statstics, 2019).
III. Efficient Management System:
Every company must have effective management as it contributes to the success of the
organization. They are the combination of policies, the procedure used by the institution to
achieve the long term and short- term objectives. In John Lewis, there is a need for effective
leadership, maintenance of transparency and accountability in the business environment, and
effective communication with the employees and other partners. For an efficient system, the
company must respect its employees and partners, and involve them in the decision-making
process. There should be flexibility in the working system so that employees can give their
100%. Besides this, employees must be given training to deal with the customers, so that they
solve customers' problems successfully and persuade them to purchase the products. In
addition to this, the company must conduct a reward system, so the employees can be
appreciated for efforts. This will strategy will inspire other employees to perform with their full
capacity
IV. Expansion On The Largest Scale:

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To attain the large market share on the global level, expansion of business across the different
nation is crucial. Initially, John Lewis and Partners must expand its business across other
nations through their website, as cost-effective and assist the company in analyzing its
customers. This strategy will also help the company in identifying its competitors. While planning
the steps, the company must adopt an effective advertising strategy to attract customers.
Besides this, before entering the new market, the company must study the prevailing market of
the company and government policies that may affect the company (Deloitte, 2019).
Action Plan
Time Frame (2019)
Activities
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A. Research and
Assessment
· Efficient management
system
· Quality Production
· Coaching and
Mentoring
· Expansion
B. Meeting
Employment
Satisfaction
C. Meeting Customer
Satisfaction

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Conclusion
It can be concluded that with the development of e-commerce in industry, the retail industry is
evolving and the era of physical retailer store is disappearing. Its impact can be observed in the
capital of Britain, London where online purchasing has become a trend. This trend has
threatened the survival of physical outlets in London, in which John Lewis Company has
adopted this trend and now satisfying the demand of the customers through both the platforms.

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Bibliography
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