John Lewis ‘back to its roots’ with renewed Never Knowingly Undersold campaign
John Lewis has announced the reintroduction of its Never Knowingly Undersold (NKU) price promise – and analysts have generally welcomed the move as the retail giant looks to consolidate its place in an increasingly competitive and price-sensitive UK landscape.
Zoe Mills, Lead Retail Analyst at GlobalData, says the resuscitation of its NKU price promise, coupled with an updated narrative on its proposition, highlights a return to its roots that will be crucial to competing in a highly price-sensitive retail market.
“John Lewis has been in an identity crisis since it culled its NKU price promise over two years ago,” Mills says. “In 2022, its shift in focus to “everyday value and quality” was not enough to contend with its closest competitors across home, electricals, apparel, and beauty. This updated initiative will reassure its existing customers on price and make some headway in enticing back lapsed shoppers that had turned to its competitors.
“Now that price has returned to its mantra, consumer sentiment surrounding value for money at John Lewis should improve, particularly as the cost-of-living crisis has scarred shoppers’ finances. With price matching against 25 retailers, including, notably, Amazon’s electricals proposition, GlobalData anticipates that this will put John Lewis on the front foot as we enter the golden quarter.
“Limiting the extent of the price promise to 25 retailers will make the promise more manageable, and while it may lessen its impact with shoppers, it does include some online specialists that were excluded from the previous promise, and the list is made up of the retailers that its shoppers are most likely to compare it with.
“Celebrating 100 years since NKU was first launched, John Lewis intends to adapt this service over time to react to the changing retail landscape so that it does not face the dilemma that caused it to ditch the promise in 2022. It expects the relaunch to accelerate sales but, with the inclusion of online retailers such as Amazon, it is going to have a negative impact on gross margins.”
Photo by Daniel Adesina on Unsplash
