HOWWE SHOP, LIVE & LOOK The John Lewis Retail Report 2013 HOWWE SHOP, LIVE & LOOK The John Lewis Retail Report 2013 Foreword from Andy Street Managing Director, John Lewis

Contents

Foreword from Andy Street 01 Next year marks the 150th anniversary and over the past year have welcomed understand how the nation shops, looks of John Lewis opening a draper’s shop on nearly a million new customers through and lives: our peculiarities and preferences. Chapter one - What shapes the way we shop? 02 Oxford Street, and 150 years of building a our doors. Our audience is now younger, business with a unique place in the hearts more urban, more male and less affluent Since 1919, we have released our weekly Chapter two - How we shop 06 of the UK’s shoppers. In fact, two per than you might think – 39 per cent of our trading updates to the general public, and cent of the UK public refer to the brand customers are under 34 years old and 44 now we have pulled information together every day in conversation – that’s 900,000 per cent are men – showing that we cater to give a rich account of trends and Chapter three - How we live: home 12 people a day talking about John Lewis*. for the needs of an increasingly broad patterns from across the year, which we This goes to show just how embedded base of UK shoppers. hope will give some sociological insight. Chapter four - How we live: cook 16 the brand has become in the nation’s daily How We Shop, Live and Look holds up life. With the retail environment remaining a mirror to the nation’s habits. We hope Chapter five - How we live: play 20 ferociously competitive, this more you enjoy it. We’ve fought hard to win the trust of our connected audience, has both the pick Chapter six - How we look: her 24 customers, something we never take for of the high street and online. They’re a granted, through our Never Knowingly savvy bunch who demand and expect the Chapter seven - How we look: him 30 Undersold commitment, through breadth and depth of products to suit advertising which has captured people’s their needs at a price they can afford. Chapter eight - What we left behind 34 hearts, and through the dedication of our That we have continued to grow our Partners to offer the best service on the business through a tough climate for retail high street. Whether it’s or lights, is, we believe, testament to our ability Chapter nine - Christmas 2013 36 prams or pans, TVs or Furbies, we are to evolve and remain in touch with the there for the big and the small purchases changing tastes of the nation. Chapter ten - What’s in store for 2014? 40 in life. Through this rich relationship with the Having broadened our appeal beyond our nation, we’ve developed an insight into reputation as Middle England’s stalwart the products and channels favoured of retail, we’re breaking into new markets by our customers. We’ve learnt to The majority of statistics within this report are from John Lewis’s own database between the time period August 2012 to July 2013. However, there are some exceptions to this and any further information can be provided by John Lewis on request. Contact details can be found on the back cover of this report. * Source: Keller Fay Group’s TalkTrack® Britain, May 2012 – April 2013 1 Chapter One What Shaped the Way We Shopped?

Whether we realised it or not, the news spring, and flip flops were left on to cheaper brands or a lower spend, agenda, the Royal Family, celebrities, the shelf, with customers still looking though; rather an emphasis on quality and TV shows and major film premieres all for woollies and waterproofs long after value and the growing view of purchases had a big impact on the purchases we we’d anticipated. Hot summer days also as long-term investments. made over the past year. In a few short led to a lull in sales, as we spent the months, trends fired up then fizzled and time soaking up the sun in our gardens, All this has added up to a rich tapestry of innovations upgraded and streamlined. rather than perusing the shops. Supply influences that has helped to evolve the A host of new product launches blazed and demand is always a delicate balance tastes of a nation. onto Britain’s high streets and some and sales of summer staples such as fans, classic items enjoyed a renaissance. juicers, sunscreen and picnicware gave us a boost in a quiet period for retail. A bigger, harder to predict influence on shopping trends is Britain’s weather. The But it wasn’t just the mercury going last twelve months saw some extreme up and down that influenced us. The weather - a wet autumn, a long, cold glum reality of a listless world economy winter and a blisteringly hot summer. At focused the minds of many consumers times this took its toll on John Lewis in 2013. The impact of five years in the sales, as it did for other retailers. In the doldrums has not always seen a reversion

2 3 The events that influenced us in 2012/13 Roaring twenties back in style Sales soar with the mercury in Prince George makes his as The Great Gatsby premieres the heat wave debut to an expectant nation Dapper styles for gents and flapper Picnicware collections increased by The swaddle Prince George looks for ladies took off - sales of 168%, with picnic rugs rising 23%. appeared in promptly sold out, with satin gloves rose by 109.3% across sales increasing by 600%. The Olympics effect the year. This year, pearls are up 10%, Sunscreen and fake tan sales were During the week beginning 10th August handkerchiefs are up 27%, bow ties both sent soaring in the heat by more 2012, sales of Beats headphones – as have seen an increase of 15% and than 60%, while sunglasses (48 %) seen on the likes of Team GB diver, Tom waistcoat sales doubled in the first half and sandals (61%) also enjoyed major Daley and tennis silver medallist, Laura of 2013. growth. Robson – increased by 116%.

The Olympics effect also convinced people to work from home: sales of office chairs increased by 14%, desks by 20% and filing cabinets jumped by 66%. Victoria Wood’s Nice Cup o f Te a brews up a storm Infusers and kettles shot up by 69% following this BBC One show.

Murray mania Vintage returns with new Murray mania ran high, as searches series of Downton Abbey The Great British Bake Off gets for trainers on johnlewis.com spiked New series of Downton Abbey us in the mood for cake during Wimbledon. began in late September. John 2012 Food mixers leapt 62%, demand for 2013 Lewis expects to double sales bread-makers went up 29% and cake of vintage-style cocktail glasses. cooling racks flew up 70%.

Johnny Harrington BBC 2 Series The Great British Bearded, flame-haired model, Johnny Sewing Bee has us in stitches Harrington, the face of John Lewis & Co for spring/summer 2013 boosted Searches for sewing machines almost sales of the range by 58%. tripled between February and April, coinciding with BBC 2’s Great British Sewing Bee series.

Housing market pick-up? Christmas 2012 sees a rush Orders for carpets and hard flooring are up 3.8% and hard for trees and jumpers flooring increased by 6.25% Outdoor fashion tree sales saw a compared with last year. 70% rise, which increased by 20% every week up to Christmas. Horse meat scandal sends Cold weather endures mincer sales soaring The UK’s daffodils failed to bloom and artificial Searches online for ‘Christmas Sales of a £35 plastic mincer flowers made a come-back with sales running at 18% jumper’ saw a 1,412% increase on increased by 48% year on year. higher in spring/summer 2013 than the same time in 14th December. 2012. Bed socks increased by 101% compared with last year.

4 5 Chapter TWO HOW WE

Consumer expectation is changing at decision, make the purchase and arrange and Kuoni travel concessions all helped us pace. Shoppers are demanding – and delivery on johnlewis.com with our green to stand out in a competitive market. A being given – a growing pool of channels van fleet or to go back to order in-store. nice cuppa is still a vital part of people’s through which they can buy the brands shopping trips, and we sell three million SHOP they love. The flexibility of Click & Collect, where pots of tea and two million scones per an item is ordered online and collected year. Retailers need to establish what makes from a shop of a customer’s choice at them different; for John Lewis this is a time that works for them, has proved Our busiest shopping day of the week about trust. The most generous returns a revelation. Online shopping via this is, unsurprisingly, Saturday, with a peak policy on the high-street, a minimum two- method now accounts for 40 per cent from 11am-3pm, although transactions per year guarantee on electrical goods, and of purchases made on johnlewis.com, an hour are higher on Sunday. Our Partners’ our famous Never Knowingly Undersold increase on last year when that figure expert knowledge and commitment to commitment, means that customers trust was 27 per cent. We’ve pioneered this service give us a competitive edge we John Lewis. approach and customers have responded, think is unmatched on the high street. showing that the combination of ‘bricks Omni-channel & clicks’ is where the future of retail lies. Online and mobile With the addition of Waitrose Click & Whatever the customer’s preference; Collect facilities and newly introduced johnlewis.com now stocks a quarter of a browsing in a shop, price checking on a Collect +, our proposition continues to million products, from which customers desktop PC or buying on a tablet, in-store grow. can buy anything from lawnmowers to collection or home delivery, there’s no set designer handbags. The busiest day in path to purchase from John Lewis. The the run-up to Christmas will be ‘Cyber omni-channel approach we’ve developed Shops Sunday’, 1st December 2013, when and refined allows the purchasing route Contrary to some headlines, we don’t shoppers, armed with one of the final pay for any item to flow seamlessly across think that online shopping is replacing the packets of the year, will buy most of their online, mobile and shops. high street. In fact, our shoppers tell us presents. that they still enjoy shopping as a leisure For instance, furniture has the longest activity. John Lewis continues to draw Within the John Lewis customer base, buying journey of any product, taking customers into its high street shops with 42 per cent of online traffic now comes up to nineteen days. Getting inspiration shop sales up three per cent for the first from smartphones and tablet computers. from our catalogues may be a starting half of 2013. Fashion is a key driver of sales for mobile point when buying a sofa, followed by as people love to browse on their tablets, comparing prices on a tablet at home, This year we invested £57 million in our at their leisure. then visiting a shop to check the fabric existing shop estate and we are redefining texture and feel and to ask for advice the department store for the 21st century. from a John Lewis Partner. Equipped with Promotions, inspiring shop displays, the information they need, customers increasingly experiential in-store activity may decide to go home, mull over the such as Beauty Retreats, Little Waitrose

6 7 Britain’s shopping habits uncovered Our typical customer 28% John Lewis’s customer base is growing and diversifying every year. They are an over 55 Midnight - 6am 12pm – 2pm: Tablet Shop don’t sleep Lunchtime browsing eclectic bunch far removed from the middle-aged and middle class stereotype. Customers are more likely to browse At lunchtime, shoppers are more on mobile in the morning as phones are likely to browse from a desktop increasingly used as an alarm, meaning they than a mobile or tablet. shop online after waking up. Mobile 1 million new Younger customers shoppers In 2012 and 2013, new marketing and product launches - such as our 39% Somerset by Alice Temperley range Desktop and now iconic Christmas advert – John Lewis’s customers are younger than helped draw in nearly one million new you might think; in fact, 39% are under customers. 34 years old. Only 28% are over 55. Go-to shop Their tastes

0 0 0 00 0 0 0 0 0 0 0 0 4:00 :0 :0 :0 :0 :0 5:00 :0 :0 :0 :0 :0 00:00 01:0 02:00 03:00 0 05:00 06: 07 08:00 09:00 10 11:00 12 13 14 1 16:00 17 18:00 19 20 21 22 23:00 for men are getting younger 9am: 9pm: 44% In fashion, customers have dispensed Clocking on and logging in Winding down after work Most expensive on mobile Driven in part by an expanding with hackneyed and outdated ideas of what people at certain ages should Use of desktops and laptops Browsing on tablets overtakes mobile The most expensive item range of electricals and home look like. People from 20 to 90 are overtakes mobile at 9am, just as and peaks steeply during ad breaks bought on the mobile site was technology, and the success of a increasingly looking for brands which people arrive at work and log on to when people use tablets while watching a £7,000 television, which was menswear marketing campaign might be thought of as targeting younger their PC. TV - the rise of dual screening. purchased at 10:05pm. fronted by model Johnny Harrington, 44% of John Lewis’s customers. The success of on-trend customers are male. Further brands including Whistles, Ray-Ban and impetus for men to shop with John Barbour show customers want to feel Lewis in 2013 was John Lewis’s stylish and modern regardless of their debut at the fashion showcase age. Most popular on mobile Most viewed before purchase London Collections: Men. The most popular item People really take their time to find and design their bought on mobile devices is a perfect soft furnishing look, with upholstery having the Less affluent white Egyptian cotton towel. highest number of views per order. John Lewis’s than you’d customers imagine Biggest online seller Least viewed before purchase Washing machines are When it comes to buying children’s items, we’re quick use all channels the biggest online sellers and decisive: purchases for children and babies tend to 42% by revenue. have the fewest views before an order is made. One in three customers who view school shirts will purchase Nearly half of John Lewis them. customers have a household 64% income of under £30,000. Omni- Savvy Fashion on the go Mobile mums channel 20% 16% Fashion products make up a Nursery items and baby essentials both have a higher Store Online shoppers greater proportion of sales on proportion of traffic share on mobile devices than on only only mobile devices than they do for desktop, suggesting parents shop for their little ones’ The typical John Lewis customer is price-savvy, johnlewis.com as a whole, showing needs on the go. Nearly two thirds (64%) use both in-store and and invests in quality pieces that will stand the that people are after instant online channels when they shop with John Lewis. test of time for their homes and wardrobes. fashion fixes, buying on the go. 8 9 Believe it or not, the top selling items at Mapping Britain’s buys John Lewis included:

Scotland Liz Earle Cleanse and Polish Miele hoover bags Chocolate coins Hot Cloth Cleanser Enough hoover bags to Almost 5.6 tonnes Scottish shoppers picked up 1,152 John Lewis sold enough to fill suck up of chocolate coins - gallons of Liz Earle Cleanse and equivalent in weight to Polish Hot Cloth Cleanser at our one African elephant. stores in Edinburgh, Glasgow and 125 2million Aberdeen. bath tubs. litres of dust - which would fill five swimming pools. North East John Lewis white value mug Halogen golf ball light bulbs Large gingerbread men Customers in the North East Enough mugs to serve about Enough to power Almost enough to like to hold back the years: they populate the Isles of bought 33% more Clarins Double 600 1.2 Scilly. Serum – the big beauty hit of 2013 gallons of tea. Eiffel Towers. – than the national average. North West North West shoppers are hung up Midlands on curtains: they bought nearly a Buon Natale: shoppers in the The British brands we searched for online quarter of a million curtain hooks. Midlands purchased almost 1.7 tonnes of Christmas panettone.

Since February 2013, there have been:

East Wales Shoppers in the East like to Welsh wordsmiths: we sell the most have the upper hand: sales Scrabble tile fridge magnets in Wales. of emery boards are 19% 37,454 42,038 49,433 18,218 above the national average searches for Barbour on searches for Liz Earle searches for Mulberry searches for Somerset by Alice and Clarins Hand and Nail the John Lewis site on the John Lewis site on the John Lewis site Temperley on the John Lewis site Treatment are 20% higher.

Top three most popular searches online

1 Ted Baker London iPad South West South East Two items of London 2012 2 memorabilia – a Wenlock People in the West Country like it spicy: Shoppers in the South mascot and a Team GB shoppers bought over two tonnes of East bought 2.3 tonnes of wristband - feature in the 3 Cath Kidston Edinburgh Preserves Blazing Hot Sauces chocolate coins – more top 20 products sold in and Condiments. than any other UK region. London by volume.

10 11 Chapter THREE HOW WE How we lived in the home

John Lewis is now the second-largest living spaces, but without compromising their own mark on living spaces and retailer in the £22 billion UK home on design, the sales of the range have move away from the one-size-fits-all LIVE: market, with five per cent market share, rocketed. In fact, over 20 per cent of model. The quest to cater for customers and 6.8 per cent share in the smaller new John Lewis customers over the past as individuals has meant expanding £10.8 billion homewares market*. We are year have been acquired as a result of the choice in-store. We introduced the Any meeting changing customer expectations HOUSE launch. Shape, Any Fabric service, which reflects with the launch of new ranges and this appetite for personalised style, as activities such as Open HOUSE, a Also responding to rising house prices customers can now choose from 400 pop-up shop with a difference, which and shrinking living space, across the fabrics to upholster an item of their used cultural and culinary events to give broader furniture range John Lewis has choice. In total, John Lewis now offers a HOME customers an immersive John Lewis launched pieces designed for small homes, range of 112,203 combinations. experience. from multi-purpose dining tables – such as those incorporating drawers for extra Further evidence of a desire to express With recessionary times still fresh in the storage space – to petite sofas, which individual tastes was seen in an explosion memory, our customers are looking for from August - October 2013 have already in the personalisation of art in the high-quality pieces that are built to last. sold almost half the total they did in the home, with a 14 per cent rise in photo This is expressed through the durable whole of 2012. frames. Instilling a sense of character in statement pieces of our Design Icons our homes, globes have enjoyed a major collection, which is selling well. These A slower housing market at the start return, with sales spiking 400 per cent established pieces were cutting-edge of the year also led people to see their higher than last year. when they were created, yet continue garden as a viable extension of the house to stand the test of time. They include and new innovations such as garden We have also recognised that lighting is a the Noguchi coffee table, Herman Miller spheres, which provide an additional key style statement for many of Britain’s office chair and Eames lounger. ‘room’ outside the house, have proved homes, with sales overall increasing by 35 popular in spite of their £7,000 price tag. per cent compared with last year. Affordable home furnishing for those seeking great value and design is also a As the housing market began to show And it wasn’t just grown-up living spaces key trend. HOUSE by John Lewis is a signs of recovery during 2013, sales of that people invested in. With birth rates one-stop shop for affordable furniture items associated with buying and selling a in the UK at their highest for 40 years, and homewares, offering a solid range house increased. Carpet sales are up six more shoppers than ever before were of basics which can be built on in the per cent year on year, rugs rose by four preparing their homes for the pitter future. The HOUSE range targets younger, per cent and door knobs increased by 13 patter of tiny feet. Cribs are up 27 per urban customers, for whom space is a per cent. cent compared with 2012 and the John big concern. By offering them products Lewis Little Home range for children has which can fit comfortably into smaller Customers today have a desire to stamp been updated and expanded.

* Source: Both statistics from Verdict. 12 13 How we lived in the home

01: Bigger is better 03: Indoor activities 04: Smaller furniture 08: A long, cold winter 12: Home working 14: Internet at our fingertips

Shoppers went big on picture quality. Classic board games were increasingly From August - October 2013 petite A winter that stretched into spring Consumers are creating beautiful iPad was the second most searched for The Samsung 55” LED TV was our popular: the category is up 17% on sofas have already sold almost half saw sales of artificial flowers bloom, home work spaces - sales of British- term on the John Lewis website this third best-selling technology product. last year and jigsaw puzzles saw an the total they did in the whole of with a year-on-year increase of 28%. made Bisley filing cabinets are up by year. It is our best-selling technology 18% rise in spring/summer 2013. 2012. 206% year on year. product.

02: Personalising the home 05: Fashion and function 09: Going global 13: Seamless sound 15: The magpie effect

Images aren’t just viewed 70s and 80s style designer retro Globes have seen a revival, with an Sonos saw a 124% increase year on Decorative, glamorous lighting saw on phones and tablets, phones were popular and Wild & increase of 400% compared with year, filling our homes with wall-to- an increase this year with John Lewis pictures are displayed in Wolf rang up a sales lift of 63% last year. The 17” silver globe saw an wall HiFi sound. own-brand lighting sales up 35% year our homes: photo frame compared with last year. increase of 644%. on year and crystal ceiling fittings up sales were up 14% year 18%. on year. 2 06: Calm spaces 10: Furby is back 16: Olympic fever Sales of scent diffusers increased by The classic 90s toy is being loved 27% in autumn/winter 2012, turning again by a new generation, selling out We sold enough Wenlocks to fill the homes into calming havens. several times last year, and we expect Olympic Velodrome thirteen times. to double sales this year. 7 07: Timeless classics 11: Clocking on 12 The John Lewis Design Icons range Decorative clocks were a design 9 proved classic designs are timeless statement this year, with sales investments. The Vitra Eames DSW up 16% year on year. chair saw sales rise by 238%.

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5 8 6 13 16 11 14 15 Chapter FOUR HOW WE LIVE: How we cooked

Britain’s love affair with food continued Great British Bake Off. Desirable stand over 2,000 per cent compared with the unabated in 2013, but new appetites mixers enjoyed a 122 per cent lift and same period last year. COOK also emerged. Partly driven by recent ‘cake pop’ equipment sales grew 82 per economic woe and partly by a new cent. Meanwhile, people are recreating sense of culinary creativity, John Lewis the trend for more casual, informal customers are spending more time and But in a modern kitchen, gadgets must dining experiences seen in restaurants, effort cooking up a storm. not only be functional, they must also enticing friends and family members to be in keeping with design-conscious gather over a tapas selection, Greek It’s no longer enough just to watch chefs’ ideas about what looks good. mezze, Italian antipasti or Indian thalis. celebrity chefs using the tricks of the KitchenAids in a rainbow of shades This more casual approach to entertaining trade to create stunning dishes. This caught the eye (up 66 per cent) and sales is having an effect on sales of informal year, we’ve witnessed a year-on-year of stylish kitchenware from Joseph Joseph dining ranges, with the Al Fresco sales increase of 16 per cent across were 20 per cent up on last year. Only collection up 25 per cent, Royal Doulton’s the cookshop and small electricals the best coffee makers would do and 1815 china up 39 per cent and the simple, department, heralding the birth of the increasing sales of high-end equipment stylish Coastal collection of tableware up home ‘super chef’, for whom only the reflect this: sales of bean-to-cup coffee 46 per cent. whizziest kitchen gadgets, the sharpest machines were up 40 per cent year knives and the best quality basics will do. on year in February 2013. And for tea Further proof that serious cooks invested connoisseurs who won’t compromise in serious kit came as sales of sous vide on style or taste, the Sage by Heston equipment have increased by 44 per cent Blumenthal Tea Maker, which retails at year on year. £200, proved a popular choice.

These super-keen cooks also got back Another gadget “du jour” was the juicer, into baking in a big way, with measuring which this year evolved into a style cups and spoons flying up 128 per cent statement in kitchens up and down the this year alone, driven in part by The country. In July, sales of juicers were up by

16 17 How we cooked

01: Entertaining at home 02: Coffee nation 03: The baking bonanza 04: Winter warmers 06: Healthy living 07: Come dine with me

We set out to impress when Our coffee craving continued, with Sales of the KitchenAid Artisan Stand Hearty home cooking saw us through Britain went juicing mad over the last Informal dining ranges saw uplifts entertaining at home. Camembert the Bosch Tassimo seeing an increase Mixer are already up 130% since this the cold winter months. Sales of Le year. In July, sales of juicers were up with Al Fresco up 25%, Royal bakers more than doubled in sales, of 329%. August. Creuset jumped by 78% compared by 2,006% compared with the same Doulton’s 1815 china up 39% and going up 169% year on year and Just with the previous year, peaking in period last year. the Coastal collection up 46%. Slate cheese boards were up 17%. Home baking continued as a big trend. December 2012. People also invested in barware Sales of premium pans are up 19%. - a John Lewis carafe saw a 307% increase and sales of John Lewis ice tongs rocketed 208%. 05: Professional approach

Serious cooks invested in serious equipment with sales of SousVide increasing by 44% year on year.

Sales of the John Lewis potato ricer increased by 71% year on year. 5

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18 19 Chapter FIVE HOW WE How we played LIVE: Consumers have never had so many important gap in the market by expanding your smartphone. gadgets and gizmos to choose from. But our range and expertise in cameras to with so much choice, shoppers have to become a specialist player, doubling our App accessories, mobile apps that be increasingly tech savvy to get to grips share of the market to 6.6 per cent.* integrate with the real world, is now with the right gadgets for them. entering the mainstream. Our most We’ve trained our technology sales The digital SLR market is booming with popular “appcessories” include an app Partners to ensure they can provide a wave of enthusiastic photographers that lets users play space invaders the necessary level of tailored advice to who are serious about their hobby. Sales through an Atari dock, and, perhaps more help consumers navigate this increasingly of our DSLR cameras have increased by functionally, a World Pay connector that PLAY diverse market. Steering clear of the one- 62 per cent and lens and attachment enables credit card payments over mobile size-fits-all approach has helped our sales sales are up 116 per cent. As a point of phones, fuelling small, entrepreneurial to lift by nearly 16 per cent across the comparison, sales of compact cameras businesses. Fitness apps were big news department. Building on this commitment have decreased by 20 per cent, which and we launched the Fitbit wireless to customer service, we are now the first is perhaps unsurprising as smartphones tracker, which monitors daily activity and electricals retailer to offer a minimum develop higher standards of cameras. calorie intake alongside your sleep cycle two-year guarantee on all electrical and to help improve fitness. home technology products at no extra The technology we offer extends into cost. the home too, as the field of home 2013 was also the year that picture automation begins to take off. Examples quality took a step forward. Driven by The best example of this diversification of this emerging market include energy- advances in design and technology as well of the market is the explosion in tablet saving kettles, which get the right as a huge consumer appetite for bigger computing, with the Samsung Galaxy Tab temperature for the right beverage so and flatter TVs, 46” plus screens are the and Google Nexus tablets emerging as your green tea doesn’t turn bitter and fastest growing area within TVs at John pretenders to the iPad throne. The iPad 4 your coffee beans aren’t scalded. The Lewis. The launch of OLED (organic 16GB was our best-selling product overall, phenomenally successful wireless audio LED) technology and 4K UltraHD screen and with more brands getting involved, system Sonos, which allows control technology (four times the resolution of we’ve seen sales of tablets increase by 152 of music across multiple rooms from HD) were key milestones. The immersive per cent, outstripping desktop computers, a smartphone, is further proof of the experience offered by these technologies which we were proud to see increase by growing potential of home automation. and a greater appetite for simple sound 1.8 per cent in a market down 27 per cent. We saw a 300 per cent uplift in Sound solutions such as Sound Bar, is all part Bar sales this year. We are also launching of a wider trend for home cinema As well as customers coming to us for The Nest Fire Protect, a smoke and experiences every bit as good as your their computing needs, we’ve filled an carbon monoxide alarm that connects to local flicks.

* Source: GFK 20 21 How we played Top ten selling items The gadgets we The age of The bigger screen brought to you first the enthusiast Our TV screens grew and grew in the past year: We’ve been first to market with a number of exciting photographer technology innovations over the last twelve months. 0” to 22” televisions 23” to 31” televisions Here are just a few: Sales of DSLR cameras have increased by decreased by decreased by 62% since last year. 37% 34% Apple iPad MacBook Pro +62% 32” to 38” televisions increased by +152% 1.5%

1st December 2012 We launched Juice Chargers to power a multitude of Samsung 55” TV Bosch washing tech devices ahead of the competition. Tablets were the 39” to 42” televisions machine increased by must-have gadget of 15% 2013, but desktops aren’t dead

The proliferation of computing devices saw mixed buying 60” to 69” televisions Samsung Galaxy Tab Apple iMac patterns as consumers looked for what would best fit increased by 15th December 2012 their computing needs in the home and on the go, with many opting for hybrids – laptops you can use as tablets. Microsoft Surface launched on 15th December 2012, and was only available through John Lewis in the UK 145% until the end of February 2013. John Lewis predicts it will sell 1 tablet Tablet cases Sonos speakers every 15 seconds +15% this Christmas +8% 80” and above televisions +2% increased by Desktop Notebooks Monitors Tablets 319% 4th September 2013 John Lewis HDMI Kindle Fire Tablet We were first to market with the Samsung S9C cable Curved OLED TV, a full six weeks before other retailers. -45% Netbooks

22 23 Chapter SIX HOW WE How she looked

One of the biggest developments in Late March, the first genuinely sunny (increased by 24 per cent), pearls (10 per the way that women shop is the move period of the year, saw nearly one pair cent) and satin evening gloves, with the towards ‘buy now wear now’. This shift of sunglasses fly off the shelves every latter experiencing a massive 109 per cent LOOK: is indicative of a wider movement within minute. By May there was snow and John lift in sales. women’s fashion as shoppers no longer Lewis experienced a peak of outerwear buy for the traditional seasons. In part, it sales not normally seen outside of Mod-inspired fashion also staged a stems from a dissatisfaction with the idea October and November. As summer comeback, with quilted jackets and the of buying swimwear in January and coats started in June, the figure for sunglasses return of the ultra-wearable midi heel in June. surged once again, reaching three a both enjoying strong sales. The John minute in our peak week. Lewis Collection WEEKEND sixties-style Burberry has experimented with it; ankle crop chino was a best seller. Tamara Mellon has just launched an Customers are defining their personal HER entire business around the idea. This style in a way that suits their lifestyles. Inspiration also came from the 1990s with is something that we have seen our This is being expressed in a trend for body con styles and bright fluorescent shoppers completely in sync with over mixing and matching brands: for instance, shades. Yellow neon dresses and the last 12 months. There are a number of a Barbour jacket with a Mint Velvet top accessories sold out and leather skirts drivers for this. to go with Seven for all Mankind jeans. It’s and jackets flew off the shelves. more free and eclectic than prescriptive It is a post-Sex and the City, post-WAG stereotypes - a woman’s attitude and Sales of womenswear at John Lewis were fashion landscape, where over-the-top silhouette is more important than her strong, although the changing economic fashions and brash glitz and glamour have age. landscape makes it a challenging market. been replaced with modern icons such as This uncertainty has helped define the Alexa Chung and modern royals like the As far as specific fashion trends went, clothes women buy. This year, demand has Duchess of Cambridge. Weekly titles such in 2013 fashion took a tour through increased for pieces which strike the right as Grazia and Stylist and the increasing the twentieth century as designers and balance between value and quality, and power of Twitter, combined with the rise consumers mined some of the most which can be worn time after time and of ‘mobile shopping’, have between them inspiring decades for inspiration. in different settings. Investment pieces created a perfect storm: now consumers are an important factor, and big sellers expect to see the latest fashions and Ladylike femininity came from styles in this vein included Somerset by Alice celebrity looks, buy them instantly on a influenced from the 1920s to 1950s. Temperley for John Lewis, Max Mara tablet or mobile phone, then pick up their Women in their twenties and thirties Weekend and Tara Jarmon. Examples of purchase the next day. hankered after looks and hobbies items selling particularly well include a normally associated with an older shearling coat by Somerset at £1,000 and Immediacy is key. This was also evident generation. It’s a trend we’re calling the cashmere jumpers, proving that quality, at as we watched sales spike as the nation Young Old-fashioneds that has driven the right price, was a priority for women experienced unusual weather patterns. up sales of patterned square silk scarves this year.

24 25 How she looked

01: Go for glow 04: British brands boom 06: Prints charming 08: Well heeled 10: Shorts story

Neon was the hot look for summer Cath Kidston was the third most Trousers were en vogue with It’s official. High heels are over and Shorts saw a rise in popularity with 2012. A Whistles acid yellow Cocoon popular search term on johnlewis. printed trousers proving particularly midi block heels are the height - or sales going up throughout the year Dress sold out in three weeks. com popular. The John Lewis Collection specifically the not so height - of including during the winter months. WEEKEND Havanna print trouser fashion, up 40% in the last three sold out in four weeks in March this months. year. 05: Big in beauty 02: Casual Luxe Clarins Double Serum was John 07: Shades of summer 09: Gatsby style 11: Boxing clever Casual Luxe was a big autumn/winter Lewis’s biggest ever beauty launch 2012 trend. There’s been a 6.1% with nearly three times the expected Ray-Ban sunglasses were the must- Elegance was on trend with sales of The classic chic styling of Somerset increase year on year with coloured volume sold during its launch period. have shades for spring/summer 2013: satin gloves rising by 109%. by Alice Temperley handbags has cashmere the star performer. sales were up 189% year on year. driven a sales uplift of 40% season on Liz Earle Cleanse and Polish Hot season. Barbour was back and even dogs Cloth Cleanser is a perennial beauty were quilted – a Barbour coat for classic: John Lewis sells two bottle a dogs went up by 43%. minute.

In women’s footwear Hunter wellies 1 saw a 20% rise in the last six months 6 of 2012 compared with the previous year.

10 03: Beauty must haves

Home manicures became the norm as nail varnish increased 6%. 4 8 BB creams, skincare/make-up hybrids from the likes of Bobbi Brown, transformed the market and were up 71% year on year.

Cara Delevigne’s eyebrows got their own Twitter feed and we followed it. 5 Sales of eyebrow pencils went up by 15%.

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7 26 27 What was in her handbag? What she wore underneath

The must-have items in our customers’ handbags this year: Brazilians or briefs? or Spanx? Whatever your taste in underwear, our findings suggest it could be influenced by where you live. Here’s the news in briefs from your area… 01: The bag 07: The moisturiser 10: The umbrella

Ted Baker black tote Liz Earle Superskin Moisturiser Fulton Scotland North West Scots are 35% more likely to go for shape and control 02: The purse 08: The gloves 11: The sunglasses underwear than anywhere else in the country. Along Less is more in the with North East England, they are also most likely to North West of England, John Lewis Emma John Lewis leather gloves Ray-Ban buy large cup brands. where and G-strings are 18% 03: The scent 09: The anti-aging secret 12: The brush more popular than the North East national average. After White, lacy numbers are Chanel Coco Mademoiselle Clarins Double Serum The Tangle Teezer London, it’s also the most popular region for most common in North East sales of Wonderbras. England, which is also the 04: The scarf 13: The blemish-buster region most likely to buy suspenders (45% higher than Somerset by Alice Temperley Yves Saint Laurent Touche Éclat average) and leopard-print undies (96% higher). 05: The tablet 14: The mascara iPad Mini Benefit They’re Real Midlands Girls in the Midlands are keen 06: The lipstick to ensure that everything stays in place - this is the UK’s top Bobbi Brown region for sales of tape.

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13 Wales East Perhaps as an homage to their beloved rugby team’s Shoppers in the East of England buy in bulk. 3-packs 12 jersey, the Welsh are 19% more likely to opt for red of Sloggi white briefs are a 3 underwear. best-seller, with sales up by 15% this year.

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10 South West South East London 6 8 Women in the West Country are This is the top region for Londoners are 6% more likely most likely to go for a (98% Brazilian undies, which are 238% to buy push-up , and higher). They also have a penchant more popular in the South East black is the undie colour of for pink underwear. than the rest of Britain. choice for most in the capital. List compiled by buying teams based on best sellers and biggest risers of the year. 28 29 Chapter SEVEN HOW

WE How he looked

2013 was the year that British men This culminated in our participation in Gent, which is another one of the key truly embraced fashion and became London Collections: Men, where we trends for 2013. It involved Shoreditch connoisseurs of quality . We’d staged a catwalk presentation of the vintage and mixing smart tailoring with like to think this means that it was also a John Lewis & Co label, which is designed countrified touches, and pushed up sales year that played to John Lewis’s strengths. by our own menswear team. It was our of products such as handkerchiefs (rose We’ve never been bolder or more daring opportunity to show that with its quality 27 per cent) and cravats (ten per cent). LOOK: in our menswear department - men now fabrications, modern cuts, workwear constitute 44 per cent of John Lewis silhouettes and technical details – all It was reinforced by The Great Gatsby customers – and we have seen sales enlivened with a love of print – John film which premiered in May; the Gent increase by 10 per cent across the year. Lewis & Co had earned its place among look lets men dress smartly for work, the best of British fashion. only needing a few simple touches to The John Lewis man has become far distinguish between day and eveningwear more fashion conscious and open to One of the unmissable models at the when heading out to dinner or drinks. experimenting with his look. To cater for presentation was the magnificently It was no coincidence that big-hitting HIM these shifting tastes, we have invested bearded, flame-haired Johnny Harrington, products for us that season included a in more colourful designs and bolder the face of John Lewis & Co for spring/ white tuxedo jacket (a test run of which statement pieces. Remember the summer ‘13 and autumn/winter ‘13 flew off the shelves) plus a John Lewis Kin phenomenon of the onesie last winter? seasons, helping the range to increase yellow mustard knitted tie and a mustard We trialled them and they sold out. sales by 58 per cent for the year. The coloured waistcoat, both of which sold Sometimes our male customers like to Daily Mail referred to him as a ‘gingery out half way through the season. Add in blow the budget with style statements, tramp.’ The Times, The Daily Telegraph the unlikely element of a sell-out dress with sales of £159 Vilebrequin swimming and The Independent were rather more cane and you have an almost identical trunks rocketing this year. enthusiastic. But as images of Johnny outfit to one worn by Leonardo DiCaprio wearing the clothes went viral, it was in The Great Gatsby, showing that This is counterbalanced by a careful clear that he – and John Lewis & Co – cultural references continue to inspire approach to spending on key, durable tapped into exactly what was happening shoppers. investment pieces: the classic organic in men’s fashion: a sense of rugged plain white T-shirt in spring/summer 2012 manliness and a preference for quality With the launch of Kin in spring/summer, outsold the second most popular men’s clothing rather than fussy fashion. John Lewis also hit upon another one item by more than 50 per cent. of the key drivers in men’s decision Beards like Johnny’s became ubiquitous making process: good value. This in-house Heritage continues to be the watchword this year, seen on celebrities including Ben brand, which includes men’s, women’s in menswear, with an emphasis on Affleck, Brad Pitt and Hugh Jackman, and and childrenswear is all about clean and provenance, history, authenticity and led us to reintroduce beard oil to our modern style, with hints of Scandinavian ‘buying British’. And so we have worked shelves. functionality. Its look is pared back, with brands including Barbour, Private unstudied and – crucially – designed with White VC, Harris Tweed and Abraham All of this is part of a general return longevity in mind. Moon to produce pieces exclusively for to ‘sartorial excellence’, perhaps best John Lewis. described as the renaissance of the

30 31 How he looked

01: Onesie direction 05: Ted Baker mania 07: Timeless classic 09: Return of the Gent 10: By contrast

We saw onesie sales increase 65% 1 There has been a 42% increase in The popularity of the classic white Formal wear saw a revival in men’s Britain’s men put their best foot week on week in December 2012. searches for Ted Baker compared t-shirt endures: it was the most fashion with tailoring getting more forward by adding a splash of colour Sightings of Harry Styles and Mario with last year. popular buy for men over the past fitted. to their shoes with contrast white or Balotelli in onesies helped boost the year. bright soled shoes, up 9% on 2012. trend. Traditional British brands such as Harris Tweed fared well, with Harris Tweed accessories selling out in eight 02: In for a penny 06: Man-icure 08: Preppy fashion weeks. 11: Festive spirits With male grooming going Classic British headwear company Novelty Christmas jumpers saw Penny collar shirts were a hit – we Further highlighting the formal wear mainstream, we introduced the Olney, is enjoying a revival - for the us through the festive season, with increased our range fifteenfold. trend, Jenny Knott gold cufflinks manicure set for men by Harris first half of 2013 sales were up 41% searches online seeing an incredible increased by 158% and waistcoat sales Tweed for the first time this year. compared with last year. 1,412% increase on 14th December increased by 95% year on year. 03: Beards are back 2012.

As beards became de-rigueur for the stylish man-about-town, grooming habits followed the trend and John Lewis reintroduced beard oil.

04: Scent of the times

Men want stylish understatement 9 when it comes to scent, with the 4 classic Acqua di Parma Colonia our 9 best-selling men’s fragrance.

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7 32 33 Chapter EIGHT WHAT WE LEFT Falling from favour This year, we saw items in categories from 3D TVs technology to tableware falling from favour: The UK’s love affair with 3D TV began to cool, with sales of 3D glasses going Coloured jeans down by 73 per cent. We’re confident we We ditched brightly coloured denim in haven’t seen the last of this technology favour of printed trousers. yet though, with the introduction of BEHIND OLED TVs and sales of HD TVs still going strong.

Table linens As we moved towards a less formal dining experience, table linens were on the In-ear headphones decline. Sales of discreet in-ear headphones went down by eight per cent, while chunkier sports headphones were up by 47 per cent and traditional headphones by 43 e-readers per cent. On the gadgets front, e-readers decreased in sales compared with last year. Three-piece suites We saw declining demand for three- piece suites, with just six per cent of Logos on handbags customers opting for a matching sofa Logo print handbags lost out to our new and two chairs, as people mix and match love for logo-less arm candy. their furniture to suit personal tastes.

34 35 Chapter NINE CHRISTMAS Looking ahead to 2013 Christmas 2013

It’s the same every year: the run-up to Sunday before Advent and traditionally to be high again this year and we have Christmas Day is the biggest shopping the date to make a Christmas pudding 14 exclusive jumpers available for 2013, period across Britain, seeing footfall and cake, our head chef at Peter Jones including one from which we are donating increase dramatically across the high runs a Christmas pudding masterclass. 25 per cent of sales to Save the Children. street. But year-on-year, subtle differences Slippers remain a perennial favourite and, appear in the way we shop and what we The fun isn’t limited to inside our shops yes, onesies are predicted to fly off the buy. So what’s happening this year? this Christmas. For our Oxford Street and shelves again. Peter Jones windows, we have teamed up Artificial trees saw a 40 per cent increase with designer Emma Davidge to produce Customers also buy for the home at during Christmas 2012, and we are a winter woodland scheme with animals Christmas and candles generally enjoy a predicting a further 28 per cent rise in created from products. There’s a deer festive uplift, both as home decoration 2013. People are turning to artificial trees made from Dyson vacuum cleaners, and as an easy gift. It’s not just about in part because the price of real trees puffins made from colanders and even cinnamon and cloves at Christmas, but has increased in recent years and people penguins made from kettles. a range of sophisticated scents that help want to reuse their realistic-looking trees to emphasise a home’s personality. Best year after year. The Vintage Blue tree and To give customers guaranteed sparkle in sellers include festive warm scents of the Rural Berry and Pinecone tree are Christmas 2013, John Lewis has invested orange and amber. Perennial favourites predicted to be this year’s best sellers, heavily in logistics and higher stock levels are fresh tea fragrances and seashore along with outdoor trees and novelty capable of absorbing peaks in demand, ozone fresh scents remain popular for lighting like reindeer and snowmen, as although we can never predict the bathrooms. customers want to celebrate Christmas great British weather. Footfall in shops outside their homes. But artificial trees continues to peak on the Saturday before Consumer technology sales are likely to are not only getting better, they’re also Christmas; 21st December this year; surge at Christmas and this year’s hottest getting bigger: this Christmas our range with people rushing to make last-minute gadgets include the highly-anticipated includes the Aspen Slim tree which is 10 purchases. Apple launch, the Xbox One, the Sony feet high! Bravia Smart TV 55” and Sony NFC smart On the subject of last-minute purchases, lenses. Augmenting the festive feeling is a greater it seems men persist in leaving it until emphasis on seasonal food and hampers. the eleventh hour to buy gifts. Sales of Last year, mobile made up almost 50 per Luxury hampers have been one of the fragrances and beauty gift sets peak the cent of online traffic on Christmas Day, biggest success stories in food. A debut week before Christmas and cashmere so we predict that this year mobile will range priced from £30 to £850 launched peaks two weeks before the big day. remain popular, overtaking desktop traffic just two years ago, with sales increasing for the first time at approximately 5pm by 80 per cent over the past year. When it comes to buying for men, on Christmas Day. Interestingly, we also novelty Christmas jumpers are popular, see a huge spike for trade from tablets on For those who are keen to make their although these are expected to tail off Christmas day at 3pm, after the Queen’s own festive food and create a Christmas by Christmas 2014. In 2012, searches for speech when people open their new iPads unique to them, John Lewis is offering ‘Christmas jumper’ rose an incredible for the first time. a series of masterclasses as part of our 1,412 per cent on 14th December ‘Yule-iversity’. On Stir-Up Sunday, the last compared with 2011. Demand is expected

36 37 Christmas 2013 top predictions A nation prepares: Gifts for grown-ups Here are the gifts we think will surprise and delight those treats and trimmings who have it all this Christmas. Return of the board game

While there are plenty of whizzy tech treats on the cards for Christmas, traditional board games are enjoying a revival with a 17% increase on last year. Here are the games we predict families will love this year:

Large gingerbread Mr Stanleys Somerset by man Candy Cane Alice Temperley full length cashmere robe

John Lewis festive hamper Bananagrams Pass the Pigs The Cube Articulate Bose AE2W full Vintage blue pine tree Christmas Sparkle size Bluetooth Hamper headphones

Bugatti Diva coffee maker Mulberry Pass the Christmas Where is Moldova Logo Billionaire Linkee Bayswater Pudding double zip tote 1kg Panettone 4m Woodland Star wrap

Thomas Pink Allegra London Golden Lion Lady cashmere What we think kids dip dye scarf

The Hobbit Monopoly Cluedo will ask for Compendium This year we see the return of the Furby as a special Christmas edition is unveiled. Timeless classics such TomTom as Monopoly and Lego will also be popular, while multi-sport GPS lucky young ones also stand to receive new scooters watch +17% and the Kurio Mini tablet. increase in traditional Herald board game sales John Lewis Wooden Mini Kitchen Molton Brown five-piece full Langour Piccolo size Exclusive Monopoly with travel game scented candle drum kit John Lewis Whistle & Go Dog collection Kurio Mini John Lewis Colour My World Globe Lego Winter Village Exclusive Christmas Jumper Furby John Lewis Snakes & Ladders Maxi Scooter Red John Lewis Giant Piano Mat

38 39 Chapter TEN WHAT’S IN STORE Looking ahead to next year

Fashion, design and innovation are will still be wary of frittering money on customers. FOR watchwords at John Lewis, meaning that fast fashion and will continue to invest in 12 months can bring huge changes to long-term pieces. Meanwhile, growing pressure on living the way people shop, live and look. In spaces in UK cities will continue to drive 2014, John Lewis celebrates its 150-year How we will live purchases of space-saving furniture, such anniversary and to mark the occasion as fold-away tables, clothes rails and we will be reviving heritage prints and In technology, we will continue to see petite sofas. Multi-functional pieces, for working with the designers of tomorrow demand driven by high-profile launches, example dining tables, where different to create new ways to excite and inspire particularly in the fields of home members of the household can eat, play 2014? customers. computing, communications, audio-visual and store things will also remain popular. entertainment and cookery. Appcessories are set to sell well, with the fabled How we will shop ‘internet of things’ delivering ever-more Technological innovation has transformed integration between the actual and How we will look what it means to shop. The omni-channel virtual worlds. The fitness bug has really While the seasons will still provide an experience will continue as the driving helped grow the category. Our success in anchor for new fashion looks, the trend force behind this change, with more FitBit products has lifted sales by almost to ‘buy now wear now’ will continue. We accessibility via smartphones and tablet 700 per cent so far this year, with new predict 60s glamour will make a splash computers complemented by an ongoing products such as Yupii Run launching in with the release of Grace of Monaco commitment to customer service in-store. mid-November; ensuring that this trend is starring Nicole Kidman. We’re also Our focus on enhancing and developing set to continue. confident that monochrome and sports the mobile shopping experience will also luxe will be big themes for womenswear, continue in 2014, with sales on mobile Next year will see the launch of home as well as cashmere and leather for gifting. devices expected to rise further. phones that mimic the functionality of smartphones, while mobile devices such In menswear, monochrome will also While technology allows customers as laptops, tablets and smartphones will be popular, as well as an emphasis on to ‘grab and go’, people visiting shops continue to evolve. Desktop sales, while provenance and archive inspiration. We increasingly demand a more interactive not what they once were, will stay steady. also think men will be more interested in and immersive experience. John Lewis accessories than ever before, putting their will look to meet these expectations In our shops, we’ll help to show best foot forward with shoes that make a through increasingly tactile and visual customers how to furnish their whole style statement. demonstrations of products and a homes with suggestions for different focus on exclusive benefits through rooms and tastes to reflect the fact Wearable tech will take off in a big way membership programme my John Lewis that individuality and broader choice and 2014 could witness the beginnings of – giving shoppers in-store something will be key expectations for customers shopping through Google Glass eyewear different to the experience they can get in 2014. Our affordable HOUSE range of when the much-hyped product is finally online. homewares and furniture will be a big launched in the UK, as well as the new focus, maintaining our reputation for wave of connected ‘watches’ from While evidence suggests the macro- producing design classics, while helping us Samsung and Sony. economic picture is brightening, shoppers to engage with a key market of younger 40 41 HOWWE SHOP,LIVE& LOOK

Contact:

[email protected] 0207 828 1000 John Lewis Communications 171 Victoria Street London SW1E 5NN