John Lewis eyes price conscious shoppers with value own brand launch
The retailer is launching Anyday, its “most affordable” own brand range of 2,400 products designed to undercut existing collections and attract a broader range of money conscious consumers.
John Lewis is launching a value-focused own brand range of 2,400 products priced 20% lower than its current own label collections, as the department store chain gears up to reopen its doors on Monday.
Spanning homeware, tech, baby care and baby clothing, the Anyday range is described as a “critical element” in the retailer’s £800m turnaround strategy, the intention being to appeal to a broader group of shoppers looking for competitively priced everyday products.
Ranging from £1.50 for a face cloth to £499 for a three-seater sofa, the focus on “enhanced value” means in some cases Anyday products will be 40% cheaper than current John Lewis own brand items. Pitched as the retailer’s most affordable products to date, Anyday will expand into new categories this autumn, adding more than 1,000 products to the range.
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Executive director, Pippa Wicks, says the launch of Anyday signals a step-change in “modernising” the brand and offering customers John Lewis quality at prices they wouldn’t expect.
“We want to challenge value perceptions of John Lewis and attract a broader group of shoppers who want to combine style and value. This range has been specifically designed around how our customers live today,” says Wicks.
“Whatever they need, we will have a product which suits their budget, from space-saving products, cost-effective baby clothes and affordable technology to portable pieces renters can take with them when they move. This launch is a return to our commitment to offer great value for money, but it’s also an exciting opportunity to build on our own brand strengths and supercharge them for the future.”
We want to challenge value perceptions of John Lewis and attract a broader group of shoppers who want to combine style and value.
Pippa Wicks, John Lewis
John Lewis is confident its own brand value push will resonate with shoppers after a survey of 2,000 respondents, carried out by the retailer in February, found 60% of UK adults are more money conscious now than they were at the start of the Covid-19 pandemic. The team believe that, despite the easing of restrictions, offering value for money will become more important than ever to customers facing increased financial pressures.
The in-house designed range is also based on customer feedback that John Lewis did not offer enough options at lower price points, especially for key moments in consumers’ lives, such as furnishing their first home, topping up on everyday items for their children and buying baby essentials.
Informed by the research, the Anyday range will cover eight key areas of the home: the bedroom, dining room, living room, kitchen, bathroom, nursery, home office and outdoor.
Anyday is the first expression of the new pricing structure first announced last month by partnership chairman Dame Sharon White, who confirmed the retailer’s iconic ‘Never Knowingly Undersold’ price promise remains under review.
The value focus comes as John Lewis is fighting to recover from a £517m pre-tax loss in 2020 and hoping to reduce costs by £300m a year by 2022/23.
Only last month the department store chain confirmed eight stores will not reopen on Monday when restrictions lift on non-essential retail, as the business adjusts to what it described as the biggest change to the high street for a generation.
John Lewis shutters eight more stores as it pushes ahead with local format
The closures, which put 1,465 jobs at risk, include four department stores in Aberdeen, Peterborough, Sheffield and York, as well as four ‘At Home’ shops in Ashford, Basingstoke, Chester and Tunbridge Wells. The “rebalanced” John Lewis store estate now spans just 34 stores.
Alongside the rollout of the value range and store closures, John Lewis is shaking up its remaining portfolio with the launch of smaller outlets in neighbourhood locations offering a mix of services, including alterations, home consultations and personal styling, alongside a curated edit of products that will change on a regular basis.
These local outlets will be complemented by destination stores in city centres and the closer integration of the John Lewis brand within Waitrose stores. By the end of the year, all general merchandise sold in Waitrose will be John Lewis branded and trials are already underway of John Lewis “inserts” in five Waitrose stores.