John Lewis Partnership Reveals 'Partnership Plan' (Part 2 Of 2)

PARTNERSHIPS FOR GROWTH

We’re creating partnerships to reach new customers and provide capabilities we don’t have, building on trials with Deliveroo and online furniture rental business Fat Llama. We’ll add more products to Fat Llama after all initial products were rented out.

Today, we’ve announced an additional 25 Waitrose shops that will join five other stores in the Deliveroo trial*, which is attracting new, younger customers. We’re also in discussions with Deliveroo about joint community initiatives.

INSPIRATIONAL NEW SERVICES

After the first phase of improving customer service in our core retail business, we’re committing a total of £400m to grow in new areas where we are trusted and which fulfil customers’ needs. We’re also doing so because tightening retail margins in the long term won’t allow us to pay the wages we would like, or invest in our customers and communities. We're targeting 40% of our profits from new areas by 2030.

Financial services. We’re already successful here and the Partnership credit card is the UK’s biggest retail credit card. We’re committing £100m over five years to quadruple this business, offering new products and services like savings and insurance, where trust really matters for customers. Today, we're announcing a new partnership with four best-in-class experts to create a new home insurance product for our customers**. Customers will also be able to apply for retail credit across all our channels through a deal with BNP Paribas from early 2021.

Housing. We’ve identified 20 sites we own that could be used to benefit local communities by providing quality and sustainable housing, while providing a stable income for the Partnership. We’ll make planning applications for two of these in the new year in greater London. Entering the ‘build to rent’ market also allows us to furnish properties using John Lewis Home products and deliver Waitrose food. We’re a landlord already at three of our properties so this is an obvious extension for us. And we’re now talking to developers and investors who can help us achieve our ambitions.

Outdoor Living. We’ll start by joining up what we already do across both brands, including horticulture in Waitrose, garden furniture in John Lewis and our plant nursery, garden design and landscaping services at Longstock Park on the Waitrose Farm. We’re carrying out research to understand what customers want, and considering new partnerships and possible acquisitions.

Rental/Resale/Recycle. This is a growing priority for our customers. We’ve today set targets on being more sustainable and we have more than 20 initiatives running across our different product ranges or being developed to test with customers.  

Sharon White, Chairman of the John Lewis Partnership, said: “We’ve seen five years of change in the past five months and Waitrose and John Lewis have responded with great agility. Our plan means the John Lewis Partnership will thrive for the next century, as it has the last.”

“We’re adapting successfully to how customers want to shop today, while showing the Partnership is improving lives and building a more sustainable future. We’ll share our success with our customers, Partners - who own the business - and our communities.”

Nina Bhatia, Executive Director of Strategy & Commercial Development at the John Lewis Partnership, said: “This is a bold plan to grow our business and get us much closer to our customers. Waitrose and John Lewis are two of the country’s most trusted brands and we’ll offer the best products and customer service on the high street and online.”

“We’re creating new inspirational services for customers where strong ethical values and peace of mind matter, like reusing and recycling products, personal savings and rented housing. Our plans will firmly establish Waitrose and John Lewis as the go-to brands for customers that care about quality, value, and sustainability.”

Read part one here

Source : John Lewis Partnership

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