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John Lewis SWOT and PESTLE Analysis

ID : 52459153| Feb 2023| 15 pages

COMPANY PROFILE -John Lewis

Business Sector :Retail

Operating Geography :United Kingdom, Europe, Global

About John Lewis :

John Lewis PLC is a retail giant founded in 1864 and headquartered in London, UK. The company exports its products to 52 countries worldwide and operated 50 John Lewis shops, 353 Waitrose shops and an online business. The John Lewis stores offers home furnishings, such as duvets, pillows, furnishing fabrics, curtains, roller blinds, and voile services. The services include personal styling and nursery advisory, John Lewis opticians, Bureaux de Change, Kuoni travel concessions, and beauty services comprising spas and brow bars. The store also deals with catering concessions, gifts and a range of financial products, including home, car, pet, travel and wedding insurance as well as foreign currency and cards. The company is involved in property holding operations and the provision of insurance, car finance, and management services. The Waitrose stores provide a range of products comprising home cooked meals, gourmet food, nutritious meals, snacks, drinks, groceries, and food and skin care ingredients. There are 85500 employees as of 2018.

The John Lewis Partnership's (JLP) 85,500 Partners own UK retail businesses - John Lewis and Waitrose. John Lewis Partnership's mission statement reads “'the happiness of all our members, through their worthwhile, satisfying employment in a successful business, with success measured on our ability to sustain and enhance our position both as an outstanding retailer and as a thriving example of employee ownership. With this in mind, our strategy is based on three interdependent objectives Partners, customers and profit.” JLP’s USP or unique selling proposition lies in claiming and promoting the fact that it was “never knowingly undersold”, that means it tries to establish itself as the cheapest vendor (under certain prescribed conditions) of the items that it sells, which are of high quality and exclusive.

John Lewis Revenue :


£ 11,374.2 million – 28th January, 2017 (y-o-y growth 3.22%)
£ 11,018.8 million – 28th January, 2016

Competitive Analysis of John Lewis

SWOT
PESTLE
The SWOT Analysis for John Lewis is presented below:
Strengths
Weaknesses
1. Robust Growth Strategy
2. Strong online presence
3. Focus on innovation and creativity platform
4. High brand strength
5. Extensive product offering
1. Lack of international presence
2. Inconsistent Profitability
Opportunities
Threats
1. Growing demand for Private labels
2. Scope to enter new markets
3. Rising focus on healthy foods



1. Rigorous laws and regulations
2. Intense competition dominated by strong players



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Detailed SWOT Analysis of John Lewis

Strength

1. Robust growth Strategy Robust growth Strategy: John Lewis has been a consistent performer in terms of revenue with operating income in 10 billion Pounds in FY 2017. The reported growth over 2016 is 2.8%. The sales growth was noted without including partnership bonus and other exceptional items. There was an increase in market share for both Waitrose and John Lewis segments. In addition, in spite incremental costs of omni-channel retailing in John Lewis and investments in pay, operating profit performance was observed to be decent enough. The company’s profit grew to 370 million pounds which compared to last year was up by 21.2%. The profit growth was driven primarily by a decrease in pension accounting charges. However, if charges for pensions and long leave are excluded the profit before Partnership Bonus, tax and exceptional items grew by 1.9%. Product innovation, great Partner service and competitive pricing have been some of the key factors of John Lewis’ strategy which has grown their customer base, increasing the market share. Apart from this the company has a strong focus on fostering partner growth and achieving financial sustainability.destinations between UK and the US, accounting for 35% share of the total UK-US capacity.

2. Strong Online presence: John Lewis overall global presence and reputation across various countries has led to its brand development over the years. John Lewis is also a major player when it comes to finance and home care. The company is well recognized in the United Kingdom as a result of its continuous endeavour of establishing customer relationship and fostering partnership growth. The main brand values for the company lie along the lines of performance, growth and innovation. The company further invests to strengthen its brand portfolio through innovative new products. The company brands are diversified across different segments based on applications; for example, the retail offerings like home furnishings to services like beauticians. The overall net promoter score for both John Lewis Store as well as Waitrose stores have remained constant over the year however there has been an increase in best customers.

3. High brand strength: John Lewis overall global presence and reputation across various countries has led to its brand development over the years. John Lewis is also a major player when it comes to finance and home care. The company is well recognized in the United Kingdom as a result of its continuous endeavour of establishing customer relationship and fostering partnership growth. The main brand values for the company lie along the lines of performance, growth and innovation. The company further invests to strengthen its brand portfolio through innovative new products. The company brands are diversified across different segments based on applications; for example, the retail offerings like home furnishings to services like beauticians. The overall net promoter score for both John Lewis Store as well as Waitrose stores have remained constant over the year however there has been an increase in best customers.

4. Focus on Innovation and creativity: John Lewis has always kept themselves at par with the market needs and developed their product and services offerings over the years across different segments. The company has always focused on product innovation as its key strategy. The strong focus on innovation has improved the product portfolio and customer engagement for the company. Further the company has laid its focus on innovation in its strategy, like focus on digitisation and omni-channel marketing and sales. The company aims to digitize its customer shopping experience by offering an integrated platform. As a part of improving the customer service, the Company introduced new features to propel the Partnership Card usage become more convenient. Another such instance is the QuickCheck App which allows myWaitrose customers to scan barcodes on their smartphones as they place products in their basket

Weakness

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Opportunity

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Threat

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References used in John Lewis SWOT & PESTLE Analysis Report

1. John Lewis - https://www.johnlewis.com/
2. Financials - https://www.johnlewispartnership.co.uk/financials.html
3. Annual Report 2017 - https://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/financials/annual-reports/jlp-annual-report-and-accounts-2017.pdf
4. Annual Report 2016 - https://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/financials/annual-reports/jlp-annual-report-and-accounts-2016.pdf

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John Lewis SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

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