What: John Lewis is trialling a VIP lounge at its Oxford Street store, offering exclusive experiences to loyalty scheme members.

Why it is important: Launching the VIP lounge during the holiday season highlights the strategic use of peak periods to test and refine innovative retail concepts.

John Lewis has introduced a VIP lounge at its Oxford Street location, exclusively for members of its loyalty scheme, as part of a trial running through the Christmas period. The lounge offers complimentary sparkling wine, hot drinks, snacks, chocolates, and even hand and arm massages, providing a premium experience designed to reward and engage loyal customers. This initiative comes as John Lewis reports increased sales but faces declining profits due to regulatory and cost pressures, underscoring the need for innovative approaches to customer retention and in-store differentiation. By allowing members to book slots or walk in with guests, the retailer is blending digital convenience with physical exclusivity. The timing of the launch, coinciding with the holiday shopping season, is a strategic move to maximise customer engagement and test the effectiveness of experiential retail concepts during the busiest period of the year. This approach reflects a broader industry shift toward service-led, immersive experiences as a means of building loyalty and driving footfall. 

IADS Notes: John Lewis’s VIP lounge aligns with trends reported in May 2025 (“The future of loyalty, according to luxury department stores,” Inside Retail) and October 2025 (“Why high-end retail players are embracing private member clubs,” Inside Retail), where luxury retailers have prioritised exclusive, experiential loyalty strategies and private member spaces. The retailer’s ongoing investment in premium in-store experiences and brand expansion, as highlighted in February and August 2025 (“Where Peter Ruis sees opportunities for John Lewis,” Drapers; “John Lewis unveils new beauty hall concept in Liverpool,” The Retail Bulletin), demonstrates a commitment to differentiation even as financial challenges mount, as reported in September 2025 (“John Lewis’ H1 revenue up 5%, but profits hit by EPR and National Insurance costs,” Drapers). The decision to trial this concept during the holiday season mirrors industry best practices for leveraging peak periods to innovate and engage customers, as seen in September 2025 (“John Lewis opens Christmas shop nationwide,” Drapers).

John Lewis unveils VIP members lounge