Yesterday I attended an excellent seminar by Andy Street, ex MD of John Lewis. Although the topic was about Ethical business, for me it was really another fascinating transformation story.
What was most interesting for me was how JLP’s ethical approach helped them to respond to, and transform their business in response to the double whammy of digital disruption and the Credit Crunch.
Back in 2007, JLP were just starting their foray into multi-channel and had purchased buy.com to to establish their online business. However soon after, the credit crunch hit and their revenues declined dramatically.
This required a major restructure of their business, but it was impressive to hear how they stuck to their guns and continued to focus on their future growth – their online business. They were one of the pioneers of click and collect and at a time when their competitors were reducing investments, they also opened more stores as they realised that, in order to compete in the online world, they had to have more points of presence.
The results ?
- Online sales grew from 12% in 2008/9 to 36% in 2015/6
- JLP has evolved from a Multichannel to an Omnichannel model: stores run as local businesses
Last, but not least, JLP’s business is still based around bricks and mortar (I look forward to the new JLP shop opening in Oxford) . It t seems to have successfully weathered the storm and come out of the digital / credit crunch stronger and fitter for the future…
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