John Lewis’s move into airport retailing provides it with a huge opportunity to raise its brand profile among international shoppers, making it as much a destination as Selfridges or Harrods.
John Lewis’s move into airport retailing provides it with a huge opportunity to raise its brand profile among international shoppers, making it as much a destination as Selfridges or Harrods.
With Verdict forecasting that retail spend from overseas visitors will rise by 71.2% by 2018, John Lewis is right to fight for its share by promoting its brand credentials in a major travel hotspot.
While its premium department store competitors are key shopping destinations for overseas visitors to the UK, John Lewis is relatively unknown outside of its domestic market. This makes its decision to open a 3,600 sq ft outlet in Heathrow Terminal 2 in June next year a sensible move to improve brand recognition and ultimately drive footfall into mainline stores.
Verdict forecasts that spend on UK retail from overseas visitors in 2013 will reach £9.7bn, up 50.9% on 2008, representing 3.2% of total retail expenditure in the UK. The value of the pound, the spotlight on the UK following the Royal events and 2012 Olympics, and the extensive mix of brands on our high streets makes it a key destination for overseas consumers.
John Lewis’s British image, strong service credentials and recent strengthening of its branded and private label ranges will appeal to a wide customer base, ideal given the variety of travellers which pass through Heathrow.
Having a physical presence at Heathrow is an extension of its international growth strategy and is serving a captive audience currently untapped by the likes of Selfridges, House of Fraser and Debenhams – allowing John Lewis to take advantage of the growing airport retail channel while also reaching these customers ahead of rivals.
To enable John Lewis to compete against the better-known global brands in the airport terminal, it must emphasise its British heritage and the authenticity of its brands, while collections need to showcase fashionability and quality.
Flexible delivery and shipment services should also be provided to encourage impulse purchases. But more importantly, to take advantage of the growth in overseas visitor retail spend (which Verdict forecasts will increase by £6.9bn between 2013 and 2018), it must build an instant relationship with shoppers through its famed customer service. This will create a long-lasting impression on travellers that they will relate back home, promoting John Lewis’s brand globally.
Honor Westnedge, senior retail analyst, Verdict
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