John Lewis problems
- Philip Benstead
- Posts: 1958
- Joined: 13 Jan 2007, 7:06pm
- Location: Victoria , London
John Lewis problems
I see John Lewis is in trouble, reading the Sunday Times it's difficulties are mostly self inflicted..
I was wondering if others can spot similarities with other organisations?
I was wondering if others can spot similarities with other organisations?
Philip Benstead | Life Member Former CTC Councillor/Trustee
Organizing events and representing cyclists' in southeast since 1988
Bikeability Instructor/Mechanic
Organizing events and representing cyclists' in southeast since 1988
Bikeability Instructor/Mechanic
Re: John Lewis problems
Is that a dig at Cycling UK? If so I don't see the similarities.
Many of us are attracted to the ownership model of John Lewis. I hope that they can find a solution that maintains it.
Jonathan
Many of us are attracted to the ownership model of John Lewis. I hope that they can find a solution that maintains it.
Jonathan
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Re: John Lewis problems
My perception of JL is that they consciously decided to go further “up market”, from a position already high in the market, about 5-10 years ago. I recall when the large branch local to us was refurbished, and I recall remarking to my good lady that the revised “offering” was freezing-out part of their former customer base.
Now, that strategy might have worked in boom times, but I don’t recall any boom times since at least 2008, and since 2016 things have been decidedly un-boom, for various reasons and to varying degrees, with even the prosperous demographic that JL pitch to now feeling the pinch.
They must be left with fewer and fewer customers, each spending less and less money, against a background of high fixed costs and huge inventory.
Really sad if they have blown it, because I always thought the ‘employee owned’ model to be a positive, and because before they went a bit too fancy they used to stock a lot of things that were high quality, and which lasted “forever”, so were worth saving up for. Oh, and their cafe is good.
But, having big high street premises, and attempting to run a department store rather than a more specialised outlets, does seem to be ruddy difficult game to be in.
Now, that strategy might have worked in boom times, but I don’t recall any boom times since at least 2008, and since 2016 things have been decidedly un-boom, for various reasons and to varying degrees, with even the prosperous demographic that JL pitch to now feeling the pinch.
They must be left with fewer and fewer customers, each spending less and less money, against a background of high fixed costs and huge inventory.
Really sad if they have blown it, because I always thought the ‘employee owned’ model to be a positive, and because before they went a bit too fancy they used to stock a lot of things that were high quality, and which lasted “forever”, so were worth saving up for. Oh, and their cafe is good.
But, having big high street premises, and attempting to run a department store rather than a more specialised outlets, does seem to be ruddy difficult game to be in.
Last edited by Nearholmer on 26 Mar 2023, 11:51am, edited 1 time in total.
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Re: John Lewis problems
I think I remember reading something, or seeing it on the telly, about the ownership. To the effect that the original trust setup was designed in such a way that it was difficult/impossible to change, from a legal standpoint. But I daresay it is possible, after all, the mutual building societies by and large have demutualised.
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Re: John Lewis problems
The JLP Constitution is a matter of public record. The Council is the key body, elected to represent Partners' interests.
https://www.johnlewispartnership.co.uk/ ... tution.pdf
https://www.johnlewispartnership.co.uk/ ... tution.pdf
Re: John Lewis problems
Well I can think of quite a few organisations that have failed to modernise or reinvent themselves and are struggling or have failed as a result which begs the questions "How should JL change?" and "Does it have a future as a department store?".Philip Benstead wrote: ↑26 Mar 2023, 10:21am
I was wondering if others can spot similarities with other organisations?
Incidentally, the last time I went into a JL, pre-Covid in Liverpool, the staff on duty easily outnumbered the customers. I was looking for a thin fleece, the sort of thing that was on sale in local shops at may be two for £12; JL's price for a very similar looking product was £60, i.e 10X the going rate for a very run-of-the-mill product, so I didn't buy it.
So in my view a radical restructuring is needed or it will go bust.
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Re: John Lewis problems
The experts don't agree (as ever). Interesting article I read the other day:
https://www.theguardian.com/business/20 ... s-strategy
https://www.theguardian.com/business/20 ... s-strategy
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Re: John Lewis problems
They're just one more victim of a society that knows the price of everything and the value of nothing. Marks & Sparks went to the brink by trying to remain a company that offered good quality products at a fair price, now they sell cheap tat that wears out in no time like everyone else.
It would be easy to argue that people won't pay for quality because it's not always easy to tell how long something will last from looking at it (and even harder from looking at it online), but the reality is that people don't care if something lasts beyond the time it takes to go out of fashion. This is the problem at the root of attempts to promote recycling too, refurbishment might make a product look like new and work like new, but it won't make it look and work like the latest model.
It would be easy to argue that people won't pay for quality because it's not always easy to tell how long something will last from looking at it (and even harder from looking at it online), but the reality is that people don't care if something lasts beyond the time it takes to go out of fashion. This is the problem at the root of attempts to promote recycling too, refurbishment might make a product look like new and work like new, but it won't make it look and work like the latest model.
“I'm not upset that you lied to me, I'm upset that from now on I can't believe you.”
― Friedrich Nietzsche
― Friedrich Nietzsche
Re: John Lewis problems
Just cycled down to Waitrose in Wellington for a few things you cant get anywhere else I think they are moving in the right direction. They are trying to match other Supermarkets prices with ordinary everyday things and at the same time stocking lots of things you cant find elsewhere.
John Lewis is a national institution with a great model. If they abandon that they will be finished.
Al
John Lewis is a national institution with a great model. If they abandon that they will be finished.
Al
Reuse, recycle, thus do your bit to save the planet.... Get stuff at auctions, Dump, Charity Shops, Facebook Marketplace, Ebay, Car Boots. Choose an Old House, and a Banger ..... And cycle as often as you can......
Re: John Lewis problems
ICE Recumbents has recently become an employee owned company
Ianhttps://www.icetrikes.co/community/ice-news-and-blog/19-news-and-blog/272-ice-trike-news-ice-invests-in-the-future-and-becomes-employee-owned wrote:ICE Trikes, world leaders in the manufacture of recumbent trikes, is investing in a growing market by restructuring and securing the talent of its staff by becoming employee-owned. The move rewards employees, some of whom have been with the company of over 20 years, with a share of profits.