Department Stores

John Lewis faces criticism over third-party fees

Fashion brand Seasalt recently chose end its third-party relationship with John Lewis for ‘strategic reasons’

Department store chain John Lewis has reportedly faced criticism from third-party brands for the fees it charges to stock their products. 

According to the Sunday Times, third party brands currently pay up to 50% of every sale to John Lewis in commission and fees. 

The paper also said that one chief executive of a fashion brand criticised the firm when it recently tried to increase what they called its already “ridiculous” fees.

Fashion brand Seasalt recently chose to end its third-party relationship with John Lewis for “strategic reasons”, instead revealing it would focus on online partnerships with M&S and Next

The news comes after it was revealed last week that John Lewis has reportedly appointed AlixPartners to conduct a strategic review of its supply chain and buying habits. 

According to Drapers, the restructuring firm has been instructed to examine its supply chain and its buying practises, including intake margins, in order to see if it can save variable costs. 

The review, which is thought to be ongoing, will also reportedly aim to strengthen relationships between the company and its suppliers.

A John Lewis spokesperson told Retail Sector: ““The review looks at a range of themes such as marketing and shop space, as well as fees.

“We build trusting and fair relationships that benefit John Lewis and our suppliers. In the last six months, we’ve introduced 90 new Fashion brands, which demonstrates that we are an attractive partner to our suppliers.”

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