John Lewis is a retail chain departmental store British multinational company. John Lewis founded the retail chain departmental store company in 1864. The company has established a network of approximately 52 retail chain departmental stores across the world. Today, we’ll discuss the PESTLE analysis of John Lewis; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting John Lewis
Some of the main political factors in the John Lewis PESTLE analysis are as follows;
I-Government Regulations
John Lewis is operating its business in various countries across the globe. The government regulations and policies for retail chain stores are different in different countries. The retail chain departmental store brand should comply with the government policies of different countries to smoothly perform its retail operations without any delays.
II-Brexit Deal
The Brexit deal allowed Britain to get out of the EU and it had a great impact on the local businesses and stores. This is because they need to procure raw materials, supplies, and products from the neighboring EU countries. After getting out of the EU, it amplified the trade taxes and other regulatory restrictions on the country, negatively impacting the retail chain store brand John Lewis.
III-Trade Policies
The international political relations of different countries impact their trade policies. If a particular country has conflicting relations with the UK, they would impose trade restrictions, bans, and import and export taxations on all the products coming from the particular country. In short, the trade policies of the government impact the retail chain operations of the brand John Lewis.
Economic Factors Affecting John Lewis
Some of the main economic factors in the John Lewis PESTLE analysis are as follows;
I-Economic Downturn
The global economy has been going through a downturn for the past few years. The pandemic crisis and worldwide lockdown and shutdown of businesses caused massive unemployment rates across the globe. When people have limited disposable and resources, they won’t spend it lavishly; rather their focus is on meeting the basic necessary needs and requirements.
II-High Cost
The raw material costs, oil prices, and labor costs have increased significantly over the past few years. Overall, they have increased the retail price of various products and goods and made the products unaffordable to many people. High material and production costs are negatively impacting the business of John Lewis.
III-Consumer Spending
Retail consumer spending habits have a great impact on the growth of businesses and companies. For instance, high interest rates and inflations would reduce the consumer spending habits. In fact, it discourages people from spending and it motivates them to save. John Lewis should keep in mind the consumer spending trend of the particular economy while launching its business there.
Social Factors Impacting John Lewis
Some of the main social factors in the John Lewis PESTEL analysis are as follows;
I-Brand Products
The sale of brand products and private labels has been increasing significantly for the past few years. John Lewis should keep in mind the consumer shopping trend of private labels, and include brand products and private label products in its retail chain stores. It allows the company to target the specific needs and requirements of the company.
II-Healthy Dietary Food
The consumer market has become highly cautious about organic and healthy dietary products and goods. John Lewis should include healthy food items in its store relevant to the customers’ needs, preferences, and requirements. It allows them to increase sales and profitability.
III-Product Safety Information
John Lewis should make sure to add the product safety label, key ingredients, and expiration date on all of its products. It allows customers to precisely choose the products they want relevant to their health and diet requirements. It would decrease the product return rate and increase the overall profitability.
Technological Factors Affecting John Lewis
Some of the main technological factors in the John Lewis PESTEL analysis are as follows;
I-Online and E-commerce Store
The online shopping trend has been increasing significantly for the past few years. In order to keep up with the growing online trend, John Lewis has developed a very advanced e-commerce platform and online store to target online shoppers. The retail chain store brand needs to keep investing in the development of its online store to remain competitive in the online customer market.
II-Sustainable Products
John Lewis should shift its focus to the development of healthy and sustainable products to keep up with the growing environmental sustainability trends. It comprises ethical sourcing of raw materials and having a limited impact on nature and the environment.
Legal Factors Impacting John Lewis
Some of the main legal factors in the John Lewis PESTEL analysis are as follows;
Regulatory Compliance
John Lewis should comply with the legal and regulatory requirements of different countries. They comprise product safety, labor laws, environmental regulations, product labeling, IPR, import-export regulations, and trade tariffs. Compliance with regulatory policies would help the company to smoothly perform its operations and timely deliver the finished goods to the end consumers.
Environmental Factors Affecting John Lewis
Some of the main environmental factors in the John Lewis PESTEL analysis are as follows;
Sustainable Initiative
John Lewis is highly careful about environmental sustainability. The retail chain departmental store brand has taken sustainability initiatives like utilizing renewable sources of energy, ethical sourcing, and procurement, biodegradable packaging, and lower environmental waste to decrease the carbon emission rate on nature and the environment.
Conclusion: John Lewis PESTLE Analysis |PESTEL Analysis of John Lewis |External Environmental Analysis of John Lewis | Strategic Analysis of John Lewis
After an in-depth study of the pestle analysis of John Lewis; we have realized that John Lewis is the world’s leading retail chain departmental store brand. If you are learning about the John Lewis PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
