Iconic Slogan Retired Amidst Rising Costs and Online Competition
- John Lewis retires ‘never knowingly undersold’ pledge after 97 years
- New slogan to focus on everyday quality and value
- Investment of £500m in lowering prices
- Expansion of Anyday cut-price range
- Targeting profits of £400m by 2025 after reporting a loss of £26m this year
John Lewis is set to reveal a new company slogan on August 22nd, retiring its 97-year-old price pledge of ‘never knowingly undersold’. The retailer first announced the price promise was under review in March 2020 when Sharon White joined as chair. The Guardian reported that John Lewis planned to retire the old slogan in summer 2022 due to it not applying to online-only retailers and increasing reliance on online shopping. Under the old slogan, introduced in 1925, customers were refunded the difference if they found the same item for a lower price within 28 days at another store. The scheme cost millions as prices had to be cut during competitor sales. Now, John Lewis aims to focus on ‘everyday quality and value’ by investing £500m in lowering prices amidst rising living costs. This also includes expanding its Anyday cut-price range introduced last year. Chair Sharon White targets profits of £400m by 2025 after reporting a loss of £26m this year, while saving £300m in annual costs and spending £1bn to revamp shops and online business.
Factuality Level: 8
Factuality Justification: The article provides accurate information about John Lewis’s decision to retire their long-standing slogan and focuses on the reasons behind it. It also includes details about their plans for future investments and cost-cutting measures.
Noise Level: 4
Noise Justification: The article provides relevant information about John Lewis’s decision to retire its long-standing price pledge and focuses on the company’s plans for future investments. It also mentions the challenges faced by department stores in the current market environment. However, it could provide more analysis or context on the broader implications of this change and the retail industry’s trends.
Financial Relevance: Yes
Financial Markets Impacted: John Lewis, Amazon
Financial Rating Justification: The article discusses John Lewis’s decision to retire its price pledge and invest in lowering prices, which impacts the company’s financial performance and competes with online retailers like Amazon. This has implications for their financial markets and operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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