Analyzing COVID-19 Impact on John Lewis and UK High Street Retail

This case study examines the impact of the COVID-19 pandemic on the declining high street retail industry in the UK, focusing on John Lewis and Partners (JLP). It investigates the state of the high street retail sector before the pandemic, strategic decisions taken by JLP that positioned it favorably, and the impact of COVID-19 on the industry. The study also explores the tactical strategies JLP employed for survival and future success during the pandemic, highlighting the shift towards online platforms, safety measures, and hygiene standards. The research aims to provide insights into how JLP adapted and its vision for the future, emphasizing the importance of understanding consumer behavior and implementing preventive measures during times of crisis. Desklib provides this case study along with other solved assignments for students.

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

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the topic.............................................................................................................3
Background of the organisation..............................................................................................4
Research Questions................................................................................................................4
Research Aim.........................................................................................................................5
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? ............................................................................................................................11
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................13
CONCLUSION AND RECOMMENDATION ............................................................................18
REFERENCES..............................................................................................................................23

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 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

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?

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.

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.

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

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

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

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.

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.

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.