John Lewis has pledged a £500m investment to offer "John Lewis quality at great-value prices", as shoppers become more cost-conscious this year.
The retailer says its Never Knowingly Undersold pledge, which has been in place for nearly a century, is no longer enough to assure trust, "because it applies to fewer and fewer sales as shopping moves increasingly online" – and the pledge is not applicable to online-only retailers.
John Lewis is replacing it with a new approach, which applies both in-store and online.
John Lewis says its new Quality & Value pledge means that all customers will benefit from "great prices every day - without having to shop around", and that the retailer will "more proactively lead on great value, rather than reacting to other retailers’ price changes".
The £500m investment in value is +25% higher than the amount the retailer spent on keeping prices affordable last year.
"Our founding philosophy of treating customers fairly remains," says the retailer. "Shoppers can be reassured that we’ll continue to monitor other retailers’ prices, especially on products that matter most to them - from mattresses to microwaves and TVs to toys - regardless of whether they’re buying online or in store.
"Our commitment to quality, style and service won’t change. We'll have a broad range of products at different price points for every budget. And additional benefits, unique to John Lewis customers, like our standard two-year guarantees on electricals and five-year guarantees on TVs will remain, so customers can still trust we’re doing right by them.
"Our customers will also benefit from better and more personalised offers and rewards through the My John Lewis loyalty scheme."
Pippa Wicks, executive director of John Lewis, says: “Customers are tightening their belts and we’re responding so John Lewis is more affordable for every customer, every day, whether shopping in-store or online.
“Never Knowingly Undersold has been a cherished sign of trust for John Lewis for a century but it doesn't fit with how customers shop today as more purchases are made online. Our new £500m investment means all our customers can trust they’re getting the quality, style and service they expect from John Lewis at great value prices.”
The move builds on the success of Anyday, John Lewis' own-brand, affordable range. Following its introduction in spring 2021, it has proved the most successful brand launch in the retailer's history, notching up £125m in sales so far, many of them from new customers.
John Lewis says it plans to expand Anyday with more outdoor furniture for spring/summer 2022, along with the introduction of value brands including Julian Bowen furniture.
