Company needs to invest in service
John Lewis to charge for click-and-collect
Department store chain John Lewis is to start charging for its popular click-and-collect service. The partnership’s decision to charge £2 for delivering orders worth under £30 comes amid accelerating growth in online shopping.
The cost of serving the process is also rising and other retailers are bound to watch how it unfolds. John Lewis says it will spend more than £80 million on its supply chain function this year. The £100m it is spending this year on IT is five times more than it invested five years ago.
John Lewis is regarded as a model of online shopping, having pioneered much of the click-and-collect processes now used by other retailers. Managing director, Andy Street, said: “We are sure customers will understand why we are doing this.
“There is a huge logistical operation behind this system and quite frankly it’s unsustainable. We consider ourselves to be leaders and we want to take the lead on this.”
Mark Lewis, online director, says the move to charge should ensure the service is fit for the long-term.
“John Lewis is committed to being a leading omni-channel retailer and understands the importance of providing its customers with choice, convenience and above all else a long term commitment to customer service,” he said.
“We offer our customers a wide variety of delivery options but we know right now the delivery option of choice is next day Click & Collect.
“The change we have announced today will mean that the majority of orders will remain free of charge while allowing us to invest further in the expansion of Click & Collect to ensure it continues to delight customers as it grows in popularity.”