John Lewis Partnership is considering launching a buy now, pay later (BNPL) service to complement both its in-store and online purchases as it struggles with tighter consumer spending.
Arguing that younger shoppers “expect” BNPL, Nish Kankiwala, the chief executive officer of John Lewis and Waitrose, thinks the group is likely to develop its own product to help customers with purchases.
Allowing consumers the chance to pay half upfront while borrowing the rest interest-free, BNPL has grown in popularity during the cost-of-living crisis with products like Klarna being integrated into the payment options of hundreds of clothing, electrical and food delivery businesses.
Currently, John Lewis offers 12-month interest-free credit when buying furniture or certain nursery items worth more than £500, but Kankiwala’s views suggest it may look at offering the service for cheaper items like clothing and footwear.
Plans are currently in place to offer loans alongside purchases of electricals like TVs and computers, all of which will have a 16.9% interest rate attached to them.
Recording a £234 million loss in the last financial year, leadership at John Lewis Partnership has come under criticism, with chair Sharon White and her turnaround strategy facing significant flak from the 61 partners which make up the group.