What: The Conversation reviews the positive moves made recently by John Lewis, but also what the company is still missing.

Why it is important: Just like for other companies, according to The Conversation what is missing is a vision and a set of values that are in tune with the moment and the society, much more than technical solutions or other specific elements.

The John Lewis Partnership, a British department store chain owned by its 80,000 employees, has reported pre-tax profits of £56 million after a £234 million loss the previous year. However, employees (known as partners) will not receive a bonus for the second consecutive year, and there are hints of job cuts.

Despite its strong brand heritage, John Lewis faces challenges in the current retail landscape. Rivals like BHS and Debenhams have disappeared, while Marks & Spencer has undergone significant restructuring. John Lewis has streamlined operations by cutting jobs and closing underperforming stores, with reports suggesting up to 11,000 jobs may be cut in the next five years. The company's return to profit was largely due to the success of Waitrose supermarkets, which saw a 4% increase in sales, while the department store business suffered a 2% fall. Waitrose's success is attributed to its focus on providing indulgence and enjoyment through carefully curated and locally sourced products, working closely with local farmers and regional suppliers.

To remain relevant and competitive, John Lewis could adopt a similar approach by focusing on products that promote healthier lifestyles, selling items created by local small businesses, and becoming a supportive presence in the regions they serve. Research suggests that heritage brands benefit from having a moral standing and showing care for their customers, local communities, and employees.

In conclusion, John Lewis should consider making moral values a part of its evolving heritage, demonstrating care not only for its employees but also for its customers and the communities in which it operates.

John Lewis relies too heavily on its heritage – here’s what it could do instead