Contextual Analysis Of John Lewis

Contextual analysis

2013 proved to be another year associated with cautious financial management and more resilient consumers. A declining median household income of 4.5% throughout 2012/2013, among new technological advancements, and increased competition towards John Lewis in the retail industry posed several dynamics that needed addressed by the strategic team to maintain their competitive advantage, despite their successful brand re-direction in 2009. The case reports that JL was struggling with a poorer performance due to a low wallet share among its key target consumers. Studies conducted by Mintel (2013) showed that the year-on-year growth in retail sales volume was progressing slowly, with consumer demand situated at the high-low ends of the spectrum, rather than JL’s target segmentation of
It was also estimated that one fifth of consumers planned to purchase electronic equipment in 2013, while two thirds of retail sales will be accounted for by the individuals aged 55 and over, however, they are also more pessimistic than the average consumer towards future financial income and might be more resilient than average when it comes to leisure expenditure. JL was entering 2013 with a lower growth in gross sales and operating profit in 2012 when compared to 2011, affecting their finances and requiring modifications in their key competitive advantages including an outstanding corporate culture keeping customer benefit at their core. With these internal and external issues, John Lewis is forced to modify, perfect, and present their value proposition, positioning, and strategy for 2013 and onwards to the public successfully, to encourage higher spending, and become not only a trusted