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John Lewis brings back ‘never knowingly undersold’ promise as AI cuts cost of thousands of items

Roughly 30,000 prices will change next week as a result of the move

Henry Saker-Clark
Thursday 05 September 2024 13:32 EDT
John Lewis has appointed a new boss of its department store business (John Walton/PA)
John Lewis has appointed a new boss of its department store business (John Walton/PA) (PA Wire)

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John Lewis will bring back its price promise, two years after ditching the commitment.

The company’s major U-turn means it will bring back its ‘never knowingly undersold’ price pledge.

The refreshed commitment will see the retailer use AI technology to match 25 major competitors on its prices in-store and online.

The department store chain will bring back the promise – which began in 1925 – from 9 September, to boost its value perception among customers. Around 30,000 prices will change next week as a result of the move.

Peter Ruis, who was appointed boss of the retail business in January, said he looked at resuming the pledge a month into his role as part of a desire to “sharpen” the firm’s pricing.

John Lewis launched the price promise in 1925 (John Lewis/PA)
John Lewis launched the price promise in 1925 (John Lewis/PA)

The brands being matched on price are: AO.com; Amazon (on technology); Apple; Argos; Asos; Boots; Currys; Dunelm; Dreams; The Entertainer; Fenwick; Flannels; Furniture Village; Harrods; Harvey Nichols; Heal’s; House of Fraser; Lakeland; M&S; Mama’s and Papa’s; Next; Richer Sounds; Selfridges; Smyths Toys and Space NK.

Bosses said the return of ‘never knowingly undersold’ will be backed by its largest marketing investment to date, with a significant advertising campaign also launching on Monday.

In 2022, John Lewis withdrew the promise, where it would match the price of branded products in other shops if a customer pointed out they had found it cheaper elsewhere, with bosses saying it did not “fit with how customers shop today”.

On Thursday, Mr Ruis said improvements in technology mean that they can operate a “better” version of the pledge.

Peter Ruis, executive director of John Lewis (John Lewis/PA)
Peter Ruis, executive director of John Lewis (John Lewis/PA)

“Customers have recognised our quality but there were questions over whether our value offer has been sharp enough in some areas,” he said.

“The pricing mechanism we had before wasn’t fit for purpose so changing that has absolutely been the right thing.

“What we are doing now, and what the technology is enabling us to do, is really different, and customers will see the benefit of that.”

It comes amid a significant leadership shift at the business, with former Tesco UK and Ireland boss Jason Tarry set to take over a chairman of parent group, The John Lewis Partnership, early next year.

Current chairwoman Dame Sharon White said: “Now is the right time for ‘never knowingly undersold’ to return in a form that will resonate with customers whether they’re shopping in store or online.

“I’m delighted that Peter and his team are reinvigorating the John Lewis promise to our customers for the 21st century and I am excited to see the brand go from strength to strength, today as chairwoman and in future as a customer.”

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