John Lewis Partnership considers introducing buy-now-pay-later scheme
The John Lewis Partnership is considering introducing a Klarna-style buy-now-pay-later offering for its hard-pressed customers.
Speaking to This is Money, Nish Kankiwala, chief executive of the John Lewis Partnership, said: “I think we will develop a buy-now-pay-later product. Especially in the younger generation, people expect it.”
Buy-now-pay-later has grown in popularity in recent years, especially among young women.
During the interview with the publication, Kankiwala also gave an update on the progress of the retailer’s recovery plan which was drawn up three years ago. This focuses on reducing costs, improving customer service, and branching out into areas such as private rented housing.
Kankiwala said: “We are midway through it, ‘We have had the cost of living, rising utility bills and an additional £180 million of costs.
“It means we need to go even harder in some areas of the plan where I can bring my skills into play. Number one – I am fixated by customers. Growing up as I did, I can think of a thousand examples of learning from customers because they tell you the truth, though you might not like it.
“Number two is cost. With all the extra expenditure coming out of the business we really have to make sure we are as productive as possible. In some areas we are not as efficient as other retailers. We need to look at waste and the supply chain.
“The third area we need to supercharge is technology. We’ve not invested as fast as we should have.”
The partnership is aiming to post £200 million in profit over the next two years and £400 million by 2025.
Kankiwala told This is Money: “I broadly think they will be achieved by taking out more costs.
“When the previous team did the work, their assumption on inflation was about 3%. We have taken out £300 million of costs already. This year we will probably take out £100 million.
“In procurement, we can do better. But we want to do it sustainably, not just slash.”
Back in March, the partnership reported a loss of £234 million for the year ending 28 January 2023 following inflationary pressures.
