What Matters Doesn’t Change John Lewis: Being The Retail Revolution

Paul Coby

IT Director, John Lewis

17th January 2016

Paul Coby

Non Exec

Director

P&O Ferries

UK Sea Routes

Turnover £600m

Employees 1,100

IT Director

John Lewis

Retail

Turnover £3.5bn

Employees

30,000

Non Exec Director

SITA

Global Air Transport

IT and Services

Turnover $1.55bn

Employees 4,500

Non Exec

Director

Pets At Home

Pet and Vets

Turnover £600m

Employees 6,000

What Am I Going To Talk About?

Introduce John Lewis

What’s Changing?

Omni-Channel Shopping Revolution

What has John Lewis learned?

Trade over Peak

Questions

150+ years of John Lewis

• The John Lewis Partnership is the UK's

largest example of worker co-ownership

– over 91,000 Partners own the

business

• John Lewis is the UK’s largest

department store group with 46 shops

across the UK

• 32 full department stores

• 12 John Lewis at home

Underpinned by Principle One

The Partnership’s ultimate purpose is the happiness of all

its members, through their worthwhile and satisfying

employment in a successful business.

Because the Partnership is owned in trust for its

members, they share the responsibilities of ownership as

well as its rewards – profit, knowledge and power.

Christmas adverts – harness the power of the

brand

The Third Industrial Revolution – The Digital

Revolution

The Customer Journey Used to be Simple

Visit store

Purchase products

Use product

Want Product

In omni-channel everything is much more

complicated

Research

products

View

videos

Watch

adverts

Read

reviews

Visit

retail

website

Compare

prices

Visit

store

Purchase

products

Products

Delivered

Click and

collect

Take

Pictures /

videos

Use

product

Share

Review

Want

Product

Technology is at the heart of John Lewis

11

1 Foundations

2 Customer and

Partner facing

projects

3 Retail

innovation

Website underpinned by Oracle Commerce

platform

Infrastructure

Present day Oracle

Commerce 9

Most change all

the way through

the stack = slow

Presentation & Content layer

Accessible data

Ecommerce logic

Supported by leading search

technology Oracle Endeca

- Increased Revenue

- Improved user experience

- Increased search quality

- Foundations for future

development

- No adverse impact to SEO equity

Platform refresh project – Oracle Commerce

11.4

Presentation & Content layer

Accessible data

Ecommerce logic

FUTURE

Oracle

Commerce 11.4

Infrastructure

d

d

d

d Hi-frequency

change

enabled

John Lewis Stores Inspire Omni Channel

Shopping Full Line

Department Stores

Small Full Line Department Stores

At Home Stores Click &

Commute

You can’t do the front-end without sorting the back-

end

Transforming our Supply Chain with Oracle

Phase 1 includes the delivery of a new Production

Information Management tool alongside the core Oracle

Retail suite of products.

Phases 2 & 3 build on this to deliver the full supply-chain

visibility of stock and introduce new data insight tools

The aim of the Pioneer Programme is to implement new systems

and processes for end-to-end stock management across the John

Lewis supply chain.

From item creation, ordering from suppliers, through

to branch replenishment

Significant investment is underway in underpinning

technology

Make it easy for customers to shop across all channels

Innovation is in our DNA

John Lewis is famous for innovative design – of products, proposition and

business model

I wanted to replicate this for

IT…

Internal Innovation – Room Y

JLAB – our Technology Incubator

My inspiration was thinking ‘what would our

founder Spedan Lewis do?’

We live in an exciting time when technology

innovation is changing how we all live, work, and

have fun

The objectives of JLAB are:

1. Find a great product to transform the

shopping experience customers

2. Make a worthwhile investment

3. Help develop the UK start-up sector

4. Build companies that share our values

2015 JLAB Finalists

An app that allows consumers to control all of their

smart home devices through a phone, tablet or

laptop

A solar-powered cover for iPhone users

A camera device that replaces the traditional

peephole via their smartphone

A digital queue management solution

The next generation of coffee shops and cafes

22

1 Foundations

2 Customer and

Partner facing

projects

3 Retail

innovation

What John Lewis understands

INSIGHT 1: Omni channel shopping needs to be seamless

and frictionless across channels – we believe in ‘Bricks and

Clicks’

INSIGHT 2: Pretty front-ends online and on mobile are

useless without back-end technology and supply chain

excellence

INSIGHT 3: You have to manage the whole business as a

single entity not as competing channels since that's how

customers see us

INSIGHT 4: Digital driven innovation matters in a world being

changed by technology

What John Lewis understands

INSIGHT 5: Christmas is always critical to our success

and how customers shop over this peak period has

changed

RECORD SALES DESPITE WARM WEATHER

Results over the critical trading period

John Lewis achieved another very

strong sales performance with

impressive growth across all three

categories of Fashion, Home and

Technology.

This year we saw three peaks

- Black Friday Week

- Christmas

- Clearance

First class operational performance

Market beating sales for 7th year

running

Six Weeks Ending Saturday 2nd January

2016

What really matters, still matters in a world being

changed by technology

Never knowingly undersold since 1925

What Matters Doesn’t Change John Lewis: Being The Retail Revolution

Paul Coby

IT Director, John Lewis

17th January 2016