DHL – Excellence. Simply Delivered.

Director, National Distribution Centre Operations

John Lewis

May 4th 2017

DHL Innovation Center

TERRY MURPHY

OperationsOperations

Adapting to changes in Customer behaviour An Omni Channel Retailer’s Experience

Terry MurphyDirector of National Distribution Operations, John Lewis

John Lewis has a rich history dating back to 1864

3

An introduction to John Lewis

• 46 Department Stores throughout the UK

• 38,000 Partners, each one a co-owner, part of the John Lewis

Partnership

• Established in 1864

• 8 International Locations

• 2016 Sales £4,741m

• 350,000 SKUs

• 346 Waitrose Branches, also part of the John Lewis Partnership

Operations5

Retail: A Time of Change

MassPersonalisation

Personal

Mass

7

Multi-format and Omni-Channel Retailing is now our norm

Online Sales Share by Value (£)

The modern customer is increasingly demanding

I want speed

I want to change my mindI want convenience

I want choice

Omni customer interactions

Advice/Browse

Returns

Fulfilment

Transact

£528 million Investment in

the Supply Chain

12

Operational Peaks

Online Traffic is Changing

Operations

Which drive spikes in demand

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 Q1 2010 Q2 2010 Q4 2011 Q1 2011 Q3 2011 Q4 2012 Q2 2012 Q3 2013 Q1 2013 Q2 2013 Q4 2014 Q1 2014 Q3 2014 Q4 2015 Q2 2015 Q4 2016 Q1 2016 Q3

Standard Click & Collect JL Click & Collect WR International Named Day / Next Day Pre 10.30am Collect Plus Named Day Evening

Orders by proposition – 2010-2017

Looking Ahead

• Continued growth of Online – And

• Shops will provide more than a means of transacting

with customers – they will offer a role in building

lifetime relationships

• Increased personalisation – The Shopping Experience

• Human and Digital – Extending the Brand relationship

• 3 more Shops in the pipeline....

Operations

Thank You