Fashion monitor: John Lewis feels the pressure – Retail Week

John Lewis’ new managing director Paula Nickolds stated that the retailer would announce more redundancies this year however declined to offer extra element on what number of roles have been on the line and in what sectors of the enterprise they're.

Not too long ago, John Lewis announced it was cutting its staff bonus to 6% of salary, which is its lowest degree since the 1950s. It's the fourth 12 months in a row the bonus has been trimmed, regardless of the group posting massive earnings. 

So what is absolutely happening? May it's that away from the hysteria of its Christmas marketing campaign, John Lewis’ crown is starting to slide? Or is the enterprise merely taking the essential steps to protect towards an more and more unsure set of market circumstances?

Model monitoring information helps to indicate how shopper notion of the model has shifted over the previous couple of years, suggesting it isn’t as imperious because it as soon as was.

Its Impression rating (which measures whether or not individuals have a constructive impression about the model) has dropped notably since the starting of 2014. Certainly, in the previous three years its rating has declined by six factors (+57 to +51).

Its Worth rating (whether or not it offers worth for cash) has additionally declined by 10 factors since January 2014 (+30 to +20). For a corporation that prides itself on its ‘By no means Knowingly Undersold’ ethos, this needs to be a fear. As on-line competitors intensifies, the pressure on the value promise will intensify.

You will need to word that whereas these scores have declined, they continue to be very robust scores. Certainly, solely Marks & Spencer charges larger than John Lewis when it comes to the Impression rating.

Adverse press

The model has not been helped by unfavourable headlines. Whereas John Lewis receives an enormous enhance in consideration and largely constructive press every Christmas, total, it has steadily slipped from its seemingly unflappable place.

Though its Buzz rating (whether or not individuals have heard one thing constructive or unfavourable about the model) remains to be constructive, it's now notably much less so – falling from +22 in March 2014 to its present degree of +10.

Nonetheless, it is very important place this in context. John Lewis remains to be out performing its important rivals – Debenhams, House of Fraser and Selfridges – throughout most of our metrics, and total it stays one in every of the healthiest manufacturers we monitor.

That stated, one in every of the causes for John Lewis’ attraction that it's seen to do issues “the proper method” – with its “by no means knowingly undersold” ethos and the method it treats its employees serving to to separate it from different retailers.

Whereas the adjustments John Lewis has made to its enterprise could take a few of the air out of its notion scores in the quick time period, the model stays robust.

Methodology

YouGov’s BrandIndex is used to trace public notion of shops. It interviews 1000's of shoppers day by day, yielding over 2.5 million interviews a 12 months.

  • Worth – Which outfitters do you assume characterize good worth for cash / unhealthy worth for cash?
  • High quality – Which of the following outfitters do you assume represents good high quality / poor high quality?
  • Buy consideration – When you find yourself subsequent in the market to buy clothes, from which of the following would you think about buying?

For extra info, go to brandindex.com

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