John Lewis focuses on positive momentum despite deepening losses
What: John Lewis continues its transformation strategy, emphasising operational improvements and customer experience, despite reporting deeper financial losses.
Why it is important: John Lewis’s approach demonstrates how legacy retailers can pursue transformation and customer-centric strategies even amid financial setbacks, reflecting broader industry trends.
John Lewis’s latest results reveal a retailer determined to maintain positive momentum through a period of deepening financial losses. The company’s strategy centres on significant investment in store renovations, digital infrastructure, and operational efficiency, with £800 million committed to these initiatives. Under Peter Ruis’s leadership, John Lewis has revived its iconic price pledge and focused on enhancing customer service, blending its heritage with modern retail practices. This transformation has already yielded tangible results, such as overtaking M&S in customer satisfaction rankings and driving a notable increase in web traffic and in-store engagement. Despite missing profit targets during the critical festive season, the retailer has prioritised long-term sustainability, shifting employee compensation from annual bonuses to increased base pay, and investing in workforce development. These actions underscore the complexity of retail turnaround strategies, where resilience, innovation, and a relentless focus on customer experience are essential to navigating competitive pressures and evolving consumer expectations.
IADS Notes: John Lewis’s journey over the past year has been marked by ambitious transformation efforts, including a major £800 million investment in store and digital upgrades in October 2024 and a strategic shift in employee compensation in March 2025. The company’s renewed focus on customer service and operational excellence, highlighted by its rise above M&S in customer satisfaction by July 2025, demonstrates the potential for legacy retailers to adapt and thrive even as they face significant financial and market challenges.
