The high street favourite blamed online retailers such as Amazon. It said the pledge was from a different era and would be retired this summer. John Lewis currently guarantees to match the price of branded products in other shops if a customer points out they are cheaper elsewhere. But bosses said it “doesn’t fit with how customers shop today as more purchases are made online”.
However, the policy does not apply to online-only rivals, and Money- Saving Expert founder Martin Lewis said it was hardly used anyway.
He added: “The promise has always been a bit of a psychological sop to consumers, giving an arguably false impression that John Lewis is cheap. In reality, it allows the store to charge what it likes and know that, for a few price-sensitive shoppers – less than one per cent last year – who are bothered to check prices elsewhere after making a purchase, John Lewis will reduce its price but only to that of its high street competitors.”
John Lewis said that it would still monitor the prices of its rivals, and it will also invest £500million in keeping prices down without customers having to shop around.
The investment is 25 per cent more than the amount spent on keeping prices down last year, John Lewis said.
Executive director Pippa Wicks added: “Customers are tightening their belts and we’re responding so John Lewis is more affordable for every customer, every day, whether shopping in-store or online.
“Never Knowingly Undersold has been a cherished sign of trust for John Lewis for a century but it doesn’t fit with how customers shop today. Our new £500million investment means all our customers can trust they’re getting the quality, style and service they expect from John Lewis at great-value prices.”
The promise was introduced in 1925 when John Lewis had just two branches. The first store was opened in 1864 in Oxford Street, London, and there are now 35 shops throughout Britain.
Additional benefits such as John Lewis’ standard two-year guarantees on electricals and five-year guarantees on TVs will remain, a spokesman for the company said.
