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OMNICHANNEL SUPPLY CHAIN UK RETAILER JOHN LEWIS Case study based on CSCMP’s Supply Chain Quarterly Quarter 2, 2104 And Drapersonline.com October 2013

To maintain its lead in omnichannel retailing, UK retailer John Lewis has adopted a very modern strategy: converting to "hybrid" DCs that fill orders for both retail stores and online sales.

London-based retailer The John Lewis Partnership fared exceptionally well during last year's Christmas selling season. For the five weeks leading up to Christmas its total sales, in stores and online, amounted to £734 million—a 7.2-percent increase from the same period the previous year. Although in

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store sales rose only slightly, online sales jumped by 22.6 percent compared to the same period the year before. As the December sales results show, John Lewis has been very successful with its omnichannel strategy. To maintain its leadership in omnichannel retailing—which allows consumers to buy, take delivery, and make returns when and where they choose—the company has been redesigning its supply chain. As part of that initiative, John Lewis has begun restructuring its distribution center (DC) network to support a shift to an in-store replenishment strategy that will require major changes in the way it picks, delivers, and stores the products it sells. Customer interactions According to Head of supply chain development Berangere Michel, omnichannel is about allowing customers to interact with them anyway they choose at any stage of the buying process: from placing the order, to changing it, receiving it and returning it. She explained that the retailer’s research indicates that two thirds of its customers interact with them in “an omnichannel way”. The study also found that 29% of customers research in shop and buy online; 63% research online and buy in a shop; and 19% of shoppers use mobile to research before

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