Why M&S Is Winning the Retail Race While John Lewis Falls Behind

Revamp Strategies

During the Covid‑19 pandemic, retailers rushed to strengthen online operations. John Lewis, Waitrose and M&S all adapted well digitally. However, once lockdowns eased, some retailers struggled to convert online success into high street recovery.

M&S approached the challenge with confidence. It rolled out self‑service tills across its stores, allowing customers to purchase non‑food items through these facilities. It also announced the closure of 67 shops and the opening of an extra 104 food halls. This strategy reflects a clear understanding of its market. M&S has always thrived on its own brand identity and its reputation for quality food. The revamp is not a reinvention but a refocus.

John Lewis, by contrast, has experimented with new store formats and even consulted neuroscientists on design, fragrance and colour. These efforts appear less strategic and more like attempts to seem modern. M&S appeals to younger consumers through its strong brand identity, amplified by social media platforms such as TikTok. John Lewis lacks this distinctive identity, making its revamp efforts appear less coherent.

Waitrose faces similar issues. It recently ended its 12‑year partnership with Heston Blumenthal. Although the impact on sales is not yet clear, the move signals a loss of a key differentiator. Increasingly, Waitrose risks appearing to consumers as a more expensive version of other supermarkets without a unique offering.

Expansion and Partnerships

M&S’s success is not solely due to brand identity. Its expansion strategy shows a targeted approach to growth. The company plans to increase the number of third‑party brands it sells from 60 to 100. This move positions M&S as a modern department store, but with the advantage of retaining its own unique ranges.

Retail Week estimates that M&S could overtake John Lewis to become the UK’s seventh biggest retailer by sales. This highlights the shift in power between the two brands.

M&S’s expansion is strategic. Its website underwent a sporty redesign after it bought a stake in The Sports Edit. This allowed M&S to collaborate with third‑party brands while developing its own activewear range. The move aligns with consumer trends and strengthens its relevance.

John Lewis has explored alternative revenue streams such as build‑to‑let flats above Waitrose stores. However, these ideas divert attention from its core retail model and do not provide a clear strategy for brand revival.

Waitrose has attempted partnerships with Deliveroo and Dobbies Garden Centres. These efforts appear scattered and lack a unified direction. In contrast, M&S’s partnership with Costa is exclusive and reinforces its reputation for quality beyond its own stores.

Not all M&S partnerships have been profitable. Its collaboration with Ocado has been challenging. However, the partnership symbolically replaced Waitrose, reinforcing M&S’s competitive edge.

Cost of Living Crisis

The cost‑of‑living crisis has affected all retailers. Despite its reputation for higher prices, M&S continues to attract customers. Its strong brand identity and unique offerings help it weather economic pressure.

John Lewis and Waitrose customers have increasingly turned to budget retailers such as Aldi and Lidl. Even Waitrose’s price cuts on essentials have not prevented this shift. M&S retains its customer base because it offers products that consumers cannot easily find elsewhere.

Conclusion

M&S’s success stems from its strong brand identity, targeted expansion and strategic revamp. The John Lewis Partnership continues to struggle with relevance, coherence and consumer appeal. When Dame Sharon White joined the partnership, she explored a potential merger with M&S. Although the idea was abandoned, it highlights the strength of M&S’s position and the challenges facing John Lewis.