PEST

Politics: John Lewis is somewhat reliant on importing goods from abroad to meet customer demand. However, many John Lewis manufacturers are based in the UK so this is not a major concern. There is also the chance of needing the EU workforce in case of future skills shortage which could be an issue due to Brexit uncertainty, however this is a smaller concern. There are also potential of tarrifs changes if there are changes to EU policy.

Economy: The economy climate is strong in the UK, since unemployment is low and disposable spending has increased. On the other hand the cost of housing has increased so that younger customers are less confident in their buying power, and there is less demand for home items.

Society: Seamless shopping is more important than ever, online shopping experience must be as good as the in store experience for customer satisfaction. Customers also expect to get demanded products quickly and with ease, so staffs must be fully informed and trained to meet demands. Black Friday is an additional event in the UK and to keep up retailers particpate in discounted sales. Also generation Y are more likely to shop on their mobiles first before going to store, however the habit has expanded to older consumers. They are also more likely to look at online reviews or images of product.

The pension population is large in the UK with 18% of the UK population is aged 65 and 2.4% 80 or over.

Technology: John Lewis app is avaliable on IOS and Android, there is also an instore iPad for delivery. Super market Waitrose has “quick check” for efficent and quicker grocery shopping. A service called The Gift List introduced an instore scanner that helps newly wed couples find ideal gifts together.