Q & A with Charlie Mayfield - August 2007 

The Partnership
Charlie Mayfield, chairman of The John Lewis Partnership, tells Elen Lewis it’s time for marketers to get more practical

How is the internet impacting your brands?

The internet is so integrated into our business that it’s hard to imagine life without it. The online business performs in line with our top performing shops. It’s a growth driver and it stretches beyond pure purchases. About three quarters of our customers who make large purchases will research it online first. And that’s why our online information is so important. As confidence in new channels grows we’re seeing our customers use the internet to make more complex purchases like made-to-measure blinds.

Waitrose seems to be carving out a niche for itself as a retailer concerned with ethical trading. How important is the concept of corporate social responsibility to the John Lewis Partnership?

As a business partnership we have responsibility in our soul. It’s the whole point of our business, we’re based on the notion that if we treat our partners well, it will lead to good customer service. It should be a virtuous circle although we always strive to improve. On the supplier front, we’ve managed to develop great products through our long-term relationship with trusted suppliers. We’ve been sourcing our synthetic duvets and pillows from the same supplier for 30 years.

We always take a strong stance on sustainability. At John Lewis, we haven’t used it as a lead marketing message, but we audit our performance against competition. For example, we have a sustainable building policy which isn’t very glamorous but it is essential for our reputation as responsible. Waitrose has used its supplier relationships as a lead marketing message with success. In the current market where consumers are craving authenticity and origin of products, it has a strong appeal.

Are your customers aware that John Lewis and Waitrose are related under the John Lewis Partnership?

There is a strong overlap between Waitrose and John Lewis but there could be more. They are different businesses that have a strong appeal to similar customers. They’re united with a common set of values. I’m keen to ensure there’s a good understanding of our common values of quality, integrity, fairness and trust and the connection between the two brands.

What's the biggest challenge facing the John Lewis Partnership?

It’s realising our growth potential while strengthening our character. We have two strong brands that are relatively under-penetrated in the UK. We’ll be opening 12 new John Lewis shops over the next six years. In Waitrose, we’ve increased the floor space by 40% in the last four years. We’ve got appetite to go further but we won’t grow for growth’s sake. We want to maintain our distinctiveness. I’d like us to double in size but have a stronger character. I think we can have both.

What’s the biggest challenge facing the marketing industry today and what do marketing directors need to work on in order to enhance their credibility within business?  

In the context of retail, the importance of marketing in our business has grown in the last three years. We’ve been regarding marketing as a strategic role rather than just the communications department. This is such an obvious point for someone in FMCG, but less in retail. Retail is so connected with the customer yet strangely, with a few notable exceptions, retailers are not as customer-focused as they should be. Retailers have been slow to embrace and understand the strategic importance of marketing.

In terms of my advice for marketers I’d say that retail is a practical business and the challenge for marketing directors is to frame the marketing discipline in a practical way so retailers can see the relevance.