‘Never knowingly undersold’ is an iconic turn of phrase that had, for the best of a hundred years been at the centre of John Lewis’ famed value proposition.

A radical proposition when it was first introduced in 1925, the pledge was refined several times over the intervening decades to eventually become a commitment to refunding customers the difference on an item if they found it elsewhere for a lower price within 28 days of purchase.

Costly, no doubt – both in terms of keeping track of the competition’s prices as well as the price matching itself – and this is likely what guided Sharon White’s decision to scrap the promise in August 2022. Ultimately though, White’s ill-fated attempt at revolutionising the John Lewis brand failed to pay dividends.

Now, just over two years later – new managing director Peter Ruis has elected to reinstate the historic, much-loved slogan. Is this, as the retailer is trying to frame it, a triumphant return to its roots in a more stable economic climate? Or a climb-down in the face of a humiliating marketing failure?

A costly mistake

It’s important to remember the economic context in which the original decision was taken of course – and while the UK is hardly flourishing, it is in noticeably better shape than it was two years ago.

Inflationary pressures have to a certain extent dissipated although the cost-of-living continues to remain a pressing concern, posing an enduring headache to higher-end retailers like John Lewis, as customers either flock to discounters – or choose not to shop at all.

These are the factors which brought the issue to a head under Sharon White, who felt that the pledge (which didn’t apply to online sales), simply couldn’t compete in a modern retail environment.

But as we have seen this hasn’t necessarily been the case, and doing away with the iconic slogan has dented John Lewis’ exalted brand credibility – which might explain why the brand has opted for damage limitation by crawling back to its motto just two years later.

“To paraphrase Joni Mitchell, they may not quite have realised what they had ‘til it was gone,” says Iris executive strategy director, Peter Wilson surmises.

“They may have realised that addressing the pledge’s perceived shortcomings was preferable to losing a huge piece of brand equity. They may have also concluded that loudly redefining Never Knowingly Undersold could actually help the modernisation of the brand image, not hinder it.

“That’s not to say the abandonment-reinstatement was all a masterplan, but the return after two years of absence does lend an added gravitas to their pledge that could not have been conjured had it not been abandoned in the first place.”

Triumphant return or humiliating u-turn?

Is Ruis’ decision then simply good common sense? Or is it, as some have suggested, a humiliating climbdown for a brand whose reputation was once unimpeachable?

In all fairness, the reaction has been quite mixed – with many commentators acknowledging White’s genuine attempts to make the brand more competitive in an online-dominant environment, while others point out that iconic legacies take an awful long time to build up and shouldn’t be torn down so readily.

The answer most likely lies somewhere inbetween the two. Keeping up with the competition is essential for any brand’s survival – but maybe a tried and trusted 100-year-old motto should have been a bit further down on the cutting-board list.

Praising Ruis’ decision, Wilson points out that: “it’s very easy to kill a brand asset, but it takes a lot of honesty and bravery to invest in a resurrection.”

He continues: “The reality is that the first time most people will have learned about the pledge’s removal in 2022 would have been reading last week’s headline about its return. This gives John Lewis a golden opportunity to show how aligned they are to their customers’ current needs.”

Largely echoing Wilson’s thoughts is Williams Commerce head of consultancy, Tanya Peasgood. She describes the price promise as “differentiating factor in a competitive landscape” which showed  the customer at the heart of the John Lewis business.

“The removal of the promise made customers believe their pricing had gone up and was no longer competitive. Having to go back to the promise can look like a failure but if they promote it as an improved offer – more comparison points, and available online – then it gives them a chance for a fresh start.”

Is the u-turn the Ruis call?

What next then for the historic retailer? Its initial argument two years ago that the economic landscape was simply too harsh to maintain its pledge certainly rings true, but have things really changed that much in 24 months that the bold new strategy merits being entirely reversed?

The whiplash induced by such a monumental call is expected to cause some confusion among shoppers and derision in other quarters. While the prevailing sentiment certainly appears to back Ruis’ decision, the bigger question is whether the damage to John Lewis’ brand reputation will be permanent.

For Peasgood, the decision is undoubtedly a shrewd one: “The challenges of trying to maintain accuracy on the previous promise with manual checks was always resource and staff time, and that was a key part of the reason it was dropped in 2022.

“I also believe that in a troubled financial period for the brand, it gave them an opportunity to improve margins. Having more stability as a business, and having price tracking software available, does allow for its return at a lower cost to the business.”

Improvements in AI mean that new technology allows the business to carry out automated price matches at a much larger scale than ever before.

“Of course tech developments have made the price match more practical and feasible that it was in its previous life,” Wilson affirms.

“But it’s important to note that John Lewis is referring to the move as a ‘reimagination’ of a ‘brand promise’, not simply a ‘return’ of a ‘price promise’.

“The pledge – and the retailer – has never been solely about price. It’s about the trifecta of product quality, reliable service and a competitive price. This is a chance to reset people’s expectations and remind shoppers why it’s been an institution for so long.”

It must be said that customers have welcomed the return of ‘Never Knowingly Undersold’, and why wouldn’t they? It offers a fair price for a good product, coming from a trusted name with exemplary customer service.

“The British public might not always want simply the very cheapest price. More importantly they don’t want to be fooled,” FreshBritain director of brand strategy, Andy Lipscombe very astutely observes.

“They want a fair price for a good product, from someone they know and trust, that’s delivered to them with reassuringly high levels of customer service. And this is what John Lewis uniquely understands.

“Over 100 years John Lewis has become that rare commodity, a British institution built on fairness and dependability that showed us time and again it could be trusted and relied upon. These are quintessentially British values.”

All’s well that ends well then? John Lewis will certainly be hoping so – and its next few quarterly results will certainly prove to be interesting reading.