John Lewis to invest £200 million in overseas expansion

John Lewis to invest £200 million in overseas expansion

The British chain of department stores John Lewis will be investing 200 million pound (almost 230 million euro) in overseas expansion. The chain is not interested in opening new locations, but online shops and working with foreign partners is right up their ally.

“No physical stores overseas”

Managing director Andy Street announced that 2013 will be a year full of overseas investments, but without opening physical stores abroad. There will however be new webshops: before the end of the year John Lewis wants to open up separate stores for France and Germany.

 

After a “very successful try-out” with South-Korean Shinsegae, the group is on the lookout for partnerships with other department stores: “There are future opportunities to partner with other prestigious department stores around the world through that wholesale model”, says Andy Street.

 

Quarter of sales online

John Lewis, which opened up seven new locations in the past fourteen months, has had a great year: comparable sales grew by 10.5%, while total sales rose by 13.5% to 3.05 billion pound (approximately 3.5 billion euro) and operational profits soared by 37.2% to 216.7 million pound (250 million euro).

 

Mainly online sales are on the fast track, going up by 41%. At the moment e-commerce amounts to about a quarter of total sales at John Lewis. The strongest growing segment is electronics and technology (+29%), followed by fashion (+9%) and home decoration (+6%).

 

Andy Street sees an explanation for the positive results in the current crisis: the consumers look for brands they know and trust and they choose for retailers they can rely on for years to come.

Questions or comments? Please feel free to contact the editors


EU and Japan agree in principle on trade deal

20/07/2017

(content provided by EuroCommerce) After more than four years of negotiation, the EU and Japan have reached a political agreement in principle on an Economic Partnership Agreement during Japanese Prime Minister Abe’s visit to Brussels. 

Ensuring your packaging is not past its prime

18/07/2017

By the end of 2017, almost a quarter of everyone on the planet will be over the age of 50. This represents a huge opportunity for retailers but they must be wise, particularly in regard to their packaging choices, if they want to engage this demographic.

Over 100 exhibitors at Shoptalk Europe

18/07/2017

(advertorial) Shoptalk Europe is the big, new event for retail and ecommerce innovation. It covers the transformational trends, technologies and business models reshaping how consumers discover, shop and buy in an age of digital disruption. 

European consumer remains upbeat

18/07/2017

Research firm GfK’s recent study shows that the European consumer trust keeps growing, but there are vast differences depending on the country.

Reckitt Benckiser evades taxes through the Netherlands

13/07/2017

British Reckitt Benckiser, which owns brands like Durex, Calgon and Nurofen, has evaded hundreds of millions of euros in taxes through the Netherlands according to Oxfam Novib after it studies the company’s financial results.

Alibaba trials its own cash register-free store

13/07/2017

It seems the cash register-free supermarket is the next big trend for many companies: Amazon and Albert Heijn now face competition from Chinese Alibaba, which just launched its own formula.

Back to top