John Lewis Partnership (JLP) is making significant investment in technology as part of its digital transformation strategy.
JLP, which runs 34 John Lewis shops in the United Kingdom, has earmarked a capital investment of £542 million in 2024 focusing on modernizing its technology, refreshing shops and simplifying its work. This compares with £312 million investment in 2022-23. JLP does not disclose its specific spending for digital transformation.
Technology investment is a major focus area for JLP for improvement in customer experience and enhancement of traffic to online store and retail stores. For instance, John Lewis Partnership has purchased software valued at £130 million during the year to 27 January 2024 against £112 million in the previous financial year.
JLP has made significant investment to enhance customers’ experience across the John Lewis app and website, making it quicker and easier to shop online for delivery or collection at over 13,000 locations. Fifty-three percent of its customers use digital channels for their shopping, which demonstrates the importance of omni-channel offer, with app use a growing component of sales.
Recently, JLP announced strategic partnerships with Google Cloud, and customer loyalty and marketing experts dunnhumby and Eagle Eye, to accelerate digital transformation and deepen relationships with customers.
Today, Wipro, a leading IT service provider based in India, said it will transform and modernize JLP’s IT infrastructure. The transformation project, as part of a four-year tech contract, will help the UK retailer advance its industry leadership and future-proof its business to drive growth.
David Hunn, Chief Information Officer of John Lewis Partnership, said: “As we look to grow and modernize our business, Wipro’s expertise in digital transformation and understanding of our business needs make them the ideal partner.”
JLP’s investment in digital technology has already resulted into improvement in efficiency. JLP’s profit before tax reached £42 million in 2023-24, an improvement of £120 million compared to a £78 million loss in 2022-23.
This apart, JLP’s investment in digital technology has enabled the popular retailer to welcome 22.6 million customers during 2023-24, indicating that one million more customers shopped. JLP’s total sales rose 1 percent to £12.4 billion.
John Lewis is improving visual merchandising in stores, and investing in technology to improve customer service. John Lewis will invest in improving online experience through easier navigation and personalised product recommendations. Zak Mian is the Chief Transformation and Technology Officer of John Lewis for driving its digital focus.
Baburajan Kizhakedath
