“Place” in the John Lewis marketing mix

This is more than just a question of business location. It’s well established that John Lewis think very carefully about their target market segment when deciding where to locate department stores or Waitrose outlets. Recent reports claim that the retailer is now ‘thinking small’ to beat the recession, with compact stores in smaller prosperous towns.

According to The Guardian the new ‘compact’ (actually five-storey) John Lewis in Exeter is a departure from the company's usual sprawling interiors. Like other major chains before the recession, John Lewis relied on new malls and regeneration projects to provide new outlets. Many schemes have since been mothballed or dropped. At half the usual size, the "flexible" format means opening in smaller shopping centres makes financial sense. "We can now consider opening shops in areas that were not always thought feasible for a traditional John Lewis building," says one insider. He sees "at least 10" locations, including York and Chelmsford, where such stores could work.

You’ll be well aware that town centres around the country are being pushed to breaking point as retail chains are felled by the recession. Many towns would be desperate for the lift offered by John Lewis arriving and apparently local news reports hailed the arrival of John Lewis as one of the most significant events in the Exeter's economic history.

It’s hard to see what the future holds for retail (and if the John Lewis star will continue to shine as brightly). The success of the large indoor shopping complex, such as Manchester's Trafford Centre or the Westfield malls in London, suggests consumers want big modern stores even if they bemoan the disappearance of their high street. Retailers now need just 120 stores to cover the UK compared with 500 in the 80s and 90s. Despite being a national chain John Lewis currently has just 38 stores, supplemented by a huge online operation.