John Lewis drops ‘never knowingly undersold’ pledge
John Lewis is ditching its “never knowingly undersold” price match pledge after almost a century, saying it had lost relevance at a time when it faces stiff competition from online retailers such as Amazon.
The staff-owned department store chain said it had made the decision to retire the well-known slogan this summer because its price promise did not apply to online-only retailers, and shoppers were increasingly buying online.
John Lewis said it would, however, invest £500m in lowering prices to offer customers “everyday quality and value” at a time when consumers are facing a squeeze on disposable incomes as bills rise and pay growth fails to keep pace with inflation. It will also expand its Anyday cut-price range.
Under the never knowingly undersold slogan, which John Lewis introduced in 1925, the chain commits to refund customers the difference if they find the same item on sale elsewhere for a lower price within 28 days. The retailer first revealed the pledge was under review in March 2020, a month after Sharon White joined as chair. Analysts said John Lewis was likely to introduce a new marketing slogan when the NKU pledge was phased out this summer.
Department stores are facing heavy competition from Amazon and other online specialists and the never knowingly undersold scheme cost millions of pounds, as the retailer was forced to cut prices whenever a rival held a sale.
The change in tactics comes amid increasing pressure from inflation, driven by increases in the prices of energy, raw materials and transport, which has made shoppers increasingly price conscious.
Pippa Wicks, an executive director of John Lewis, said: “Customers are tightening their belts and we’re responding so John Lewis is more affordable for every
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