My Favourite Shop
What's your favourite shop? One Fool tells us why, in her opinion, this high street giant beats the rest hands-down.
Rip-offs, scams and credit crunch doom and gloom are standard journalistic fare at the moment. While there's definitely a place for all that, today I'd like to strike a more cheerful note.
Here, I'm going to have a look at my favourite shop - and explain why I think it pips its high street rivals to the post. I should stress that this is just my personal view. I know that other Fools may see things differently.
So which shop am I talking about? Perhaps this slogan will give it away....
'Never Knowingly Undersold'
Dragged round the shops as a child, I remember this familiar slogan emblazoned across John Lewis bags, counters and shop fronts. But what does it really mean? And is it actually worth anything?
In a nutshell, it means that if you buy an item in John Lewis or Peter Jones - and then find the exact same item selling for less elsewhere - they'll refund the difference.
This has worked for me, and for several people I know. I've saved a fair bit of money this way, and my requests have always been taken seriously and dealt with fairly.
What's the catch? You need to be aware of the following terms and conditions:
You get up to 28 days, from the date of purchase, to claim your refund.
The branch only checks the prices of shops in the local area, `that customers might realistically cover during a single shopping trip'.
The pricing promise does not allow you to compare John Lewis' online and catalogue prices against those of online and catalogue competitors. So you can't find something cheaper on Amazon and then claim the difference!
But this promise isn't the only reason The John Lewis Partnership is my favourite shop (or rather, group of shops!).
Treatment of employees
I think the John Lewis group treats its staff more fairly than most of its high street rivals.
All 65,000 permanent staff are `partners' in the business, and share in its profits. Each March, all the profit the Partnership has made in the previous year (over and above the funds reinvested in the business) is shared among staff in the form of the Partnership Bonus.
All members of staff - from the cleaners to the managing director - receive the same percentage of their salaries as a bonus. This year, staff received bonuses which amounted to 18% of their salaries - hoorah!
And John Lewis does spend the vast majority of its profits on its staff. This year, profits totalled £319 million - of which £300 million was invested in its `partners'.
What's the catch? I can't think of one - can you?
Voted best credit card provider
When it comes to credit cards and other financial products, you might think the big banks and building societies would be ahead of the game.
In fact, at this month's Which? awards, it was The John Lewis Partnership that won Best Credit Card Provider.
The experts on the Which? judging panel chose the Partnership Mastercard based on customer satisfaction, evidence of good practice, and the card's 0% deals - together with its attractive reward scheme.
So, what can the card offer you? Here are its main features:
0% on balance transfers for six months (2% transfer fee applies).
0% on purchases for six months.
Typical 16.9% APR after this.
Earn 1 point for every £1 you spend at John Lewis, Peter Jones or Waitrose shops, or at Ocado.com.
Earn 1 point for every £2 you spend everywhere else.
Every 500 points you earn is worth £5, which is converted into vouchers to spend in these stores, or online.
Unlike many other reward card schemes, this one makes it very clear how much each point is actually worth. And because the 0% transfer and purchases deals last the same amount of time, you don't have to worry about negative payment hierarchy.
So - I think this card is worth considering if you're looking for a card with combined 0% deals, and which also offers the chance to collect reward points.
What's the catch? If you're only looking for a good combined 0% deal - or a great cashback card - you can probably do better that this.
For example, the Abbey Zero credit card offers for a six month, 0% deal on both balance transfers and new purchases, and it doesn't charge a balance transfer fee. Meanwhile, the Capital One Platinum Card offers 0% on both balance transfers and new purchases for 14 months - albeit with a 3% balance transfer fee.
Or, with the American Express Platinum Credit Card, you can earn 5% cashback on purchases made in your first three months.
The nation's favourite food store?
Another member of The John Lewis Partnership also emerged with flying colours at the recent Which? awards: Waitrose was named Britain's Best High Street Retailer.
I can think of several reasons why Waitrose does deserve this award.
It places a lot of emphasis on the ethical and responsible sourcing of its products, and tries to buy local produce as much as possible. In an age in which increased pressure is being put on food producers, I think this approach is to be welcomed.
This next one is just anecdotal evidence - but I have experienced a much better quality of service in Waitrose stores than in other major supermarkets. Perhaps this is because the staff treatment I've outlined above?
And the retailer does provide good additional services for its customers. For example, in my local store, there's easy access to both wheelchairs and wheelchair trolleys.
What's the catch? It may well be `quality food, honestly priced' - but it can still be darned pricey! You're likely to get a lot more food for your money if you head to a deep discounter like Lidl, Aldi or Netto.
You Can Trust Them
Almost everyone has a mum, auntie or other relative who swears by John Lewis. Why?
When I asked around family and friends, the same reasons came up again and again: `Good old-fashioned standards'... `You can trust the guarantees'... `Not snobby'...`Nice and clean'... `Everything you need'... and above everything else: `You know you can trust them'.
So it seems that treating your customers, and your staff, right really can pay dividends. Last Christmas, John Lewis smashed its own sales record, when many other retailers were feeling the first effects of the downturn.
And now, in the midst of the credit crunch, the partnership is outperforming many of its high street competitors - and has just bought four new shops.
I'm all for hunting down the cheapest bargains. But I think sometimes, overall shopping experience, quality and value for money can trump rock-bottom prices.
That's just my opinion. But perhaps you disagree. What's your favourite shop and why? Post your comments below!
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