Retail Insight Network

Daily Newsletter

09 August 2023

Daily Newsletter

John Lewis partners with Google Cloud for retail transformation

The organisation's renewed partnership with Google Cloud will reportedly be worth £100m over the next five years.

The John Lewis Partnership has announced a strategic partnership with Google Cloud in an expansion of its relationship with Google since 2012.

Under the agreement, more of the organisation’s technology will migrate to Google Cloud, harnessing technologies such as artificial intelligence (AI) and machine learning.

The digital transformation will be executed for the brands John Lewis and Waitrose and provide customers with tailored and personalised experiences both in-store and online.

The agreement also aims to support the John Lewis Partnership’s ambition to create a pan-Partnership customer loyalty programme in 2024.

John Lewis Partnership CEO Nish Kankiwala commented: "Investing in cutting edge technology is not just a choice, it's a necessity for a modern retailer like us. Core to our strategy is building our technology infrastructure for the long term, drawing on latest innovations to benefit our customers."

The company’s chief transformation and technology officer Zak Mian added: "Imagine a world where a customer can use an image scanning feature in their John Lewis App, but even before the appointment we see their unique preferences and give tailored recommendations that can complement products they already have. We're looking forward to an era of fresh innovation."

John Lewis has announced several initiatives recently, including the provision of internet safety advice to families and the extension of same day delivery service for online customers.

Google Cloud’s partnership strategy is primarily centered around cloud computing, consulting services, and data and analytics. These three areas combined make up 81.2% of Google Cloud's total of 1,878 partner engagements, now including John Lewis.

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats. That said, growth will be held in check in the years ahead by the permanent erosion of disposable income from the heightened cost of living impacting demand for air travel. The duty-free market in the APAC region showed strong growth in 2022, as traveler numbers surged in response to the lifting of travel restrictions. To cater for rising demand in the region, many airports in the APAC area are expanding and modernizing, giving duty-free stores greater space that will allow them to attract more customers. The future of APAC duty-free retail is also being shaped by the adoption of technology. The rise in online shopping, mobile payments, and digital marketing are giving businesses new ways to connect with customers and improve the shopping experience.