John Lewis Case Study John Lewis has been with us for over 150 years, yet the last ten has seen its biggest transformation from Department store to omni channel retailer. Come and enjoy this case study and learn from their experience.

1. John Lewis
Reinventing Retail
John Munnelly
Head of Operations

2. Magna Park Campus

3. 3
Industry
Awards
Warehouse
Operations
Omni-channel
Fulfilment

4. Content
Future ChallengesThe Journey Key Ingredients

5. 10stores
in10years
2005

6. LOOK MOM, I’M ON
THE INTERNET!
A sprinkling of Ecommerce…

7. “No bigger than an
average sized Store!”

8. Online growth - Forecast
67 1134021
2017
£300m
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
£ million
2015

9. 9
Distribution 2005

10. Store Unfriendly
Packs not SinglesEarly finish Friday!
Manual Overstocked
Wrong place
Limitations
5-Day Week

11. The Plan
Store Friendly CapacityEfficiency

12. The Reality…
The
Reality

13. Shop
Formats

14. Online expansion
High volume low margin
Introduction of Fashion

15. 1,640
Online growth - Actual
67 113 186 268 333 394
540
681
959
1,142
1,415
4021
2017
£300m
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
£ million
2015

16. “We need
more cash!”

17. 2012
Revised Strategy

18. Revised
Strategy
Empowered Partners
driving operational
excellence
Fulfilment beyond
customers’ expectations
An agile supply chain
that exploits scale to
drive efficiency
Being
Agile
The right amount of
stock in the right place at
the right time
Working
smartly
Fulfilling
customers
Empowering
Partners

19. 2016
Achievements to date…

20. Achievements
Click and Collect Sell One Pick OneSingle Pool of Stock

21. Out with the old…

22. …in with the new

23. What were the Magic
ingredients?

24. Lots of luck

25. 25
Build Scale and Capacity

26. Design Principles
Automated Vs Manual Multi Functional Modular

27. Modular
2011
2012
2013 2015
2014 2016

28. Additional Capacity

29. Additional Capacity

30. Hanging Garments

31. Hanging garments

32. Partner Model

33. Great People!

34. Magna Park Campus

35. Future Challenges
PredictabilityProfitabilityPartner Ability

36. JL Magic

37. From back of house to the Front Line!
Drivers Contact Centres Distribution
Partners

38. Once upon a
time…
Pick
Convenience
ConsumablesPack
Fulfilment Centre
Deliver
Now Cost
x 3

39. Online as % of trade
29%
26%
21%
17%
14%
12%
10%
33%
38%
07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Profitability
2017 2018 2019
50%
?
?

40. Predictability
Events
Christmas Black Friday Who Knows!

41. The 4th Industrial Revolution?
Internet of Things
Drones Cognitive Computing
3D Printing Virtual Reality
Wearables
The next wave of disrupters in retail

42. Key Insights
Capability
Back EndVs Front End
Dependability
‘What matters doesn’t change’
Flexibility
Expensive but fundamental

43. John Lewis
Reinventing Retail
Thank You