What: John Lewis updates its customer promise out of concerns for its brand perception in a moment when cost of living becomes an issue for UK customers.

Why it is important: John Lewis’ promise has been enforced for almost a century. Analysts are concerns it might impact the corporate culture and staff might feel that they are becoming like ‘any other shop’.

John Lewis will retire its “Never knowingly undersold” promise this summer and will invest £500m into a new customer pledge aiming at offering “quality at great value prices”, out of concerns for the increasing cost of living in the UK.

For the retailer, the previous pledge is not reassuring customers enough and does not guarantee trust. It is also presented as a proactive move and not a reaction to other retailers’ prices cuts. The pledge had been introduced in 1925.

The £500m investment represents an increase of +25% compared to the amount John Lewis spends on keeping prices affordable. It aims to guarantee great quality at great prices both online and offline.

The new customer pledge also hopes to capitalize on the “Anyday” range, the most affordable private label range of products available at John Lewis, which is also here to reassure customers. Prices are even advertised in TV spots.

John Lewis introduces a new pledge to customers