How good is Selfridges’ service after all? That was the question many were asking when Peter Ruis, John Lewis’ newish executive director (he took up the post in January) was reported to want a “Selfridges-style approach” to ramping up staffing in its department stores.
Ruis wants to increase concession staff while lowering the commission brands pay to incentivise the new initiative. John Lewis is reported to have some of the highest commissions in retail at between 40-50%. Much of Selfridges, and many other luxury department stores, works on a concession model whereby brands runs the department directly while paying the store commission on the sales. The staff are employed by the brand and are often incentivised to sell with commission and target-based pay.
Increasing staff on shop floors should increase the levels of service. Many comments with regards to John Lewis in recent years have been about the lack of staff, a lack of in-store stock and declining levels of service. This is from a brand run as a cooperative that hasn’t paid a bonus to its staff for the past two years.
The John Lewis Partnership was renowned for its service, so shouldn’t John Lewis be returning to John Lewis levels of service? The concession model will improve individual areas and should increase sales in those areas, but will it flow out to the wider store staffed by John Lewis Partners? It seems John Lewis wants to increase sales staff without having to pay for it. Some 3,800 roles at the John Lewis Partnership have gone in the past year.
According to the department store’s latest research, increased staffing levels could boost its sales in those concessions by a double-digit percentage. A spokesperson for John Lewis said: “John Lewis has always innovated and embraced different working models with suppliers to ensure we’re best delivering for our customers.
“We already have brand consultants across our departments, including fashion, and have done so for many years.”
Peter Ruis (The Canadian Press/Alamy Live News)
John Lewis seems to have fresh impetus. Outgoing chair, Dame Sharon White recently said it was “back on track”. Ruis is a great rehire having previously been there as executive buying and brand director (from 2005 to 2013) and should understand the style-lead, aspirational customer from his time as CEO of Jigsaw (2013 to 2018) and managing director at Anthropologie (2018 to 2020). Former River Island CEO (2019 to 2023) Will Kernan joined as Non-Executive Director in late 2023. He is currently chairman of interiors brand, Neptune, and handcrafted gifted biscuit retailer, Biscuiteers. These are both brands perfect for the stylish John Lewis consumer.
The first green shoots of product are coming through. John Lewis is a new 86-piece homeware collab. collection dropping with Collagerie in September. The super-stylish shopping site, curated by former Voguers Lucinda Chambers and Serena Hood, has delved into the extensive John Lewis archive which boasts over 35,000 prints from the last 150 years. There is also an embargoed menswear collaboration in the pipeline.
The John Lewis Partnership has the right customer, it needs to give them the right product. These new collaborations are pointing in the right direction and increasing staffing levels will help steer consumers and offer the human touch to in-store shopping experiences that, when positive, do resonate.
John Lewis has been too busy cutting costs over the past few years and neglected to look forward. The stores look underinvested. It feels like it is finally turning a corner. Get the product right and there will be money to invest in the retail spaces; chicken follows egg.
A store of concessions is not the answer for this group famous for its service. John Lewis needs to incentivise staff and train them so they are better and more knowledgeable than anything on high-street or online. Now, where have we seen that before?!
