John Lewis has made significant strides in fortifying its supply chain in anticipation of the upcoming Christmas season, backed by a substantial investment of £400 million into automation technologies at its sprawling distribution centres located at Magna Park and Fenny Lock in Milton Keynes. This development comes as part of the retailer's broader strategy to enhance operational efficiency and bolstered capacity to meet rising consumer demand during the holiday shopping period.
The automation initiative commenced in February with the introduction of 60 autonomous picking robots developed by Hai Robotics. This was followed by the deployment of 60 smaller Automated Mobile Robots from Locus Robotics in March. The 10-metre-tall autonomous systems have already demonstrated their potential by delivering £1 million in efficiency savings, while collectively contributing to a 75% improvement in the storage capacity of the facilities. Notably, approximately 82% of all John Lewis products flow through these two locations.
Looking ahead, John Lewis anticipates handling an impressive 17 million items that will be picked and packed at the site in the lead-up to Christmas, alongside the logistics of delivering 375,000 larger items. This transformative investment comes as the John Lewis Partnership recorded a return to profitability in March after enduring consecutive years of losses and a decline in market share. Under the guidance of CEO Nish Kankiwala and the then-chairman Sharon White, the organisation revealed plans to inject £1 billion into stores and supply chain enhancements over the next four years, forming part of an ambitious turnaround strategy that prioritises retail.
In addition, the reinstatement of John Lewis’s storied “Never Knowingly Undersold” promise in September reflects an effort to restore customer confidence and competitiveness. The retailer is also implementing a series of new store investments under the leadership of returning boss Peter Ruis. Alongside this, supermarket chain Waitrose has embarked on a significant expansion strategy, targeting the establishment of 100 new stores over a five-year period.
The momentum surrounding John Lewis's revitalised strategy has been particularly evident in its Black Friday preparations, generating a remarkable 73% surge in web searches for Black Friday deals. Naomi Simcock, the operations director at John Lewis, indicated that consumers are increasingly prioritising quality products at competitive prices, especially relevant to gift-giving during the festive season. “Customers are increasingly looking for quality products at attractive prices – especially when thinking about gifts for their loved ones – and we are delighted so many have already made the most of our amazing offers,” Simcock stated.
However, the retailer's promotional efforts have not been without controversy. A recent report by consumer advocacy group Which? accused John Lewis and several other retailers of potentially misleading customers about the degree of discounts offered during Black Friday. The report noted instances where items were promoted at higher prices that had not been in place for up to six months. In response, a John Lewis spokesperson affirmed that, “In a highly competitive and dynamic market, our customers can find brilliant offers with us all year round.” Furthermore, they reiterated confidence in their brand promise of matching prices with 25 leading retailers, which they believe reassures customers of the value being provided.
As John Lewis navigates a complex retail landscape, its investments in automation and strategic initiatives appear aimed at re-establishing its market position during a critical shopping season.
Source: Noah Wire Services