Summary Of John Lewis Strategies

2.3. The differences in the three department stores strategies and results

We introduce two different comparisons, based on the financial results and strategical insights regarding the customer satisfaction and loyalty which can indicate the performance of the department stores.

2.3.1. Financial

As can be seen from the table below, the three competitor department stores have diverse financial results. John Lewis is the only retail- and online store which has increased its revenue moderately in the recent years and expects 50% net income growth (before taxes are deducted) for 2015. Marks and Spencer and Debenhams show flat or very slight increase in sales and their profits are falling sharply compared to 2014. In the view of these facts the

John Lewis’ strategy is the emphasis on building first the satisfaction from inside out. They create a grounded base with its ‘Partnership Constitution’ that enhances the employee satisfaction which can improve the customer satisfaction and at the end can increase the customer loyalty. Whereas the competitors start with the customer view as focus point and try to match their needs and

In particular, M&S Club is a reward programme that offers special discounts and privileges (events, anniversary discounts, etc.) to its members in an attempt to customize customer service (Marks & Spencer Group, n.d.). For its part, Debenhams proposes similar opportunities through its Beauty Club reward card, but also concerning its beauty section (Debenhams PLC, 2015b). Nevertheless, Debenhams, and also John Lewis, offer a very similar MasterCard that allow customers to accumulate points as long as they use it to purchase at their own stores or at other businesses and then exchange this points for money or vouchers. (Debenhams PLC, n.d.; John Lewis Financial Services Ltd, 2015).

Apart from those traditional reward programmes they are increasingly emphasising on digital communication, purchase channels and special offers through their webpages along with several mobile phone and tablet applications and through. As an early adopter, John Lewis integrated the My John Lewis membership card, which has more than 1.6 million subscribers since its launch in 2013, into an application because the digital solution is more convenient and less costly for both of the company and the customers. (Vizard,