0:00:02 > 0:00:04Maybe you're one of those people who got their Christmas shopping
0:00:04 > 0:00:05sorted weeks ago.
0:00:07 > 0:00:08Or maybe not.
0:00:08 > 0:00:12Britain's biggest retailers certainly can't afford to leave it till
0:00:12 > 0:00:14the last minute.
0:00:14 > 0:00:16For months and months,
0:00:16 > 0:00:20they've been doing everything possible to get us to shop with them.
0:00:20 > 0:00:24I'm Cherry Healey, and I'm going behind the scenes inside
0:00:24 > 0:00:27John Lewis to see how it fights for our Christmas cash.
0:00:27 > 0:00:31Three, two, one. Switch on.
0:00:32 > 0:00:34I've never seen that happen before!
0:00:34 > 0:00:36Yeah, that is a major cockup!
0:00:36 > 0:00:40Christmas shopping fever still means rich pickings for Britain's stores,
0:00:40 > 0:00:42but the rules of the game are changing.
0:00:42 > 0:00:44How do I feel about it? Petrified.
0:00:44 > 0:00:45BELL RINGS
0:00:45 > 0:00:47Simon! What you done?!
0:00:47 > 0:00:51'We're a lot more savvy and a lot less loyal than we used to be.'
0:00:51 > 0:00:53Do you ever go in store, have a look what's there
0:00:53 > 0:00:55- and then buy it online a bit cheaper? - All the time.
0:00:55 > 0:00:57Ding! Sorted.
0:00:57 > 0:01:00The famous Christmas ad can't be a letdown...
0:01:00 > 0:01:04I don't want the last image of him to be potentially quite a sad one,
0:01:04 > 0:01:06cos in the end, he's still on his own.
0:01:06 > 0:01:08..and don't even mention Black Friday!
0:01:08 > 0:01:11There's a nice little queue building, is there, now.
0:01:11 > 0:01:13Do you expect people now to rush around that like seagulls
0:01:13 > 0:01:16- to a bag of chips?- Yeah.
0:01:16 > 0:01:18This is very John Lewis. Yes. Very orderly.
0:01:18 > 0:01:20LAUGHTER
0:01:20 > 0:01:22MUSIC: Let It Snow by Dean Martin
0:01:25 > 0:01:28# Oh, the weather outside is frightful
0:01:28 > 0:01:32# But the fire is so delightful
0:01:32 > 0:01:35# And since we've no place to go
0:01:35 > 0:01:37# Let it snow, let it snow
0:01:37 > 0:01:39# Let it snow
0:01:39 > 0:01:41# Man, it doesn't show signs... #
0:01:41 > 0:01:44June, and the British public are enjoying summer,
0:01:44 > 0:01:47blissfully unaware that retailers are already scheming to capture
0:01:47 > 0:01:51the £800 the average household will spend this Christmas.
0:01:51 > 0:01:53# Let it snow
0:01:54 > 0:01:56# When we finally kiss goodnight... #
0:01:56 > 0:01:59I've been invited along to John Lewis's midsummer press show,
0:01:59 > 0:02:02where they try to convince journalists to write
0:02:02 > 0:02:04glowingly about their Christmas products.
0:02:04 > 0:02:07# All the way home I'll be warm... #
0:02:07 > 0:02:11'Communications Director Peter Cross is already working the floor.'
0:02:11 > 0:02:15Can you explain to me why on earth, on one of the hottest days
0:02:15 > 0:02:19of the year, when people are eating ice cream in the park,
0:02:19 > 0:02:21are you putting on a Christmas event?
0:02:21 > 0:02:24The main issue is the lead times for Christmas.
0:02:24 > 0:02:27So, whilst most people, normal people, don't think about Christmas
0:02:27 > 0:02:29till November-December,
0:02:29 > 0:02:32journalists start thinking about Christmas in July,
0:02:32 > 0:02:35and all of the brands that we compete with are doing
0:02:35 > 0:02:37exactly the same thing today.
0:02:37 > 0:02:39# As long as you love me so
0:02:39 > 0:02:41# Let it snow
0:02:41 > 0:02:42# Let it snow... #
0:02:42 > 0:02:45It's kind of like a big old bazaar,
0:02:45 > 0:02:48and everywhere you look, people are selling the Christmas vibe
0:02:48 > 0:02:50like their life depends on it.
0:02:50 > 0:02:52- Do you want to make a sweet circle? - Yes, please.
0:02:52 > 0:02:55- Do you want to make an orange or a green?- How do you get it through?
0:02:55 > 0:02:58'John Lewis sells over 350,000 products,
0:02:58 > 0:03:02'and they're hoping some could be bestsellers this Christmas.'
0:03:02 > 0:03:06- So, wireless blue-tooth speakers? - Do you know what?
0:03:06 > 0:03:07I've been thinking all my life,
0:03:07 > 0:03:09"I wish I had a bracelet that was a speaker."
0:03:09 > 0:03:13'For retailers, this is what makes Christmas so special.'
0:03:13 > 0:03:14Smile! Beautiful!
0:03:14 > 0:03:18'We're all in the mood for shopping and we're very open to ideas.'
0:03:18 > 0:03:21It's a 24.2 megapixel camera.
0:03:21 > 0:03:24'I'm told that John Lewis makes 50% of its profits
0:03:24 > 0:03:28'in the last three months of the year. So, it all matters.
0:03:28 > 0:03:30'Yes, even this sprout.'
0:03:30 > 0:03:33It's called Peel The Sprout and it's £8.
0:03:33 > 0:03:35- I hope that's a winner for you. - So do I!
0:03:35 > 0:03:37THEY LAUGH
0:03:37 > 0:03:38FANFARE
0:03:41 > 0:03:44In John Lewis's biggest store in London's Oxford Street,
0:03:44 > 0:03:48they're already preparing for their 151st Christmas.
0:03:50 > 0:03:53Each of the staff will be hoping it's a lucrative one,
0:03:53 > 0:03:56because, as partners, they own the business,
0:03:56 > 0:04:00and the success or failure of Christmas will be reflected
0:04:00 > 0:04:01in their bonuses next year.
0:04:03 > 0:04:06The battle for Christmas won't just be fought
0:04:06 > 0:04:08in their 46 branches against high street rivals,
0:04:08 > 0:04:12because in the early noughties, everything changed.
0:04:15 > 0:04:18- MALE REPORTER:- By the end of last year, a third of households
0:04:18 > 0:04:20were connected to the internet.
0:04:20 > 0:04:23- MALE REPORTER:- Welcome to the world's biggest bookstore.
0:04:23 > 0:04:26Amazon.com in Seattle offers 2.5 million titles,
0:04:26 > 0:04:29but it never sees its customers.
0:04:29 > 0:04:33Now that the likes of Amazon sell and deliver almost everything,
0:04:33 > 0:04:38Britain's high street giants have had to rethink the way they do business.
0:04:39 > 0:04:43It's one thing getting people to buy all their Christmassy stuff in store,
0:04:43 > 0:04:48but I do more and more of my shopping online, as do most people I know,
0:04:48 > 0:04:52and for the retailers, that's a completely different game.
0:04:53 > 0:04:57Today, John Lewis makes a third of its sales through its website,
0:04:57 > 0:05:02and managing director Andy Street has to worry about a new range of rivals.
0:05:02 > 0:05:05So, we've got all sorts of competitors, and you might think,
0:05:05 > 0:05:09as a department store, it's House of Fraser, Selfridges...
0:05:09 > 0:05:11Other big department stores, classically.
0:05:11 > 0:05:15Of course. But if you think about what we sell in electricals,
0:05:15 > 0:05:17other department stores are not the competitors,
0:05:17 > 0:05:21it's obviously the high street electrical retailers,
0:05:21 > 0:05:24and increasingly, of course, it's the big online players.
0:05:24 > 0:05:27So, Amazon are probably, in one sense, our biggest competitor.
0:05:27 > 0:05:29They make the market.
0:05:29 > 0:05:30DRILL WHIRS
0:05:31 > 0:05:36So, it might seem odd that John Lewis is building more branches.
0:05:37 > 0:05:39Here in Birmingham, next to Harvey Nichols,
0:05:39 > 0:05:43Selfridges and Debenhams, it's muscling in
0:05:43 > 0:05:45with a four-storey monster.
0:05:47 > 0:05:52It's a £35-million gamble in an age of online shopping.
0:05:52 > 0:05:57What we really believe is that cities where we don't yet have
0:05:57 > 0:06:02a shop, there need to be a flagship shop to support the online business.
0:06:02 > 0:06:05Most customers now go into a shop, do their research,
0:06:05 > 0:06:09go home, order online. They really see one of the roles of the shop,
0:06:09 > 0:06:12to inspire them, to give them ideas.
0:06:12 > 0:06:15So, when you go into our shop in Birmingham,
0:06:15 > 0:06:19hopefully it will be our most inspirational shop yet.
0:06:19 > 0:06:22It used to be that shops were just filled with products
0:06:22 > 0:06:23stacked on shelves.
0:06:23 > 0:06:25Watch your side, Mark.
0:06:25 > 0:06:26I've got it.
0:06:26 > 0:06:30But in the age when you have to inspire online customers,
0:06:30 > 0:06:32it ain't so straightforward.
0:06:33 > 0:06:35We're just pulling off a Fiat 500 car.
0:06:35 > 0:06:38It's a talking point. It's unique. What it will give us
0:06:38 > 0:06:40is customers coming in and saying to their friends,
0:06:40 > 0:06:42"Have you seen the car inside John Lewis?"
0:06:42 > 0:06:45And that will just attract more people to come and have a look
0:06:45 > 0:06:49and enjoy their shopping experience more than other retailers.
0:06:49 > 0:06:52Ready? What, you going to lift it with him in it?
0:06:52 > 0:06:54- Yep!- Go.
0:06:54 > 0:06:56So, it's a multi-rim system...
0:06:56 > 0:06:59While the new partners get their heads round the product range...
0:06:59 > 0:07:02It's called a QUALCOMM chip.
0:07:02 > 0:07:05..branch manager Lisa Williams is checking that customers will be
0:07:05 > 0:07:08satisfied with every inch of the store.
0:07:08 > 0:07:09Nice.
0:07:09 > 0:07:11One of the days we have your teams in,
0:07:11 > 0:07:13we will say everybody should use these toilets.
0:07:13 > 0:07:15Just to sort of... Yeah.
0:07:15 > 0:07:18Just needs to get volume through, doesn't it? Volume.
0:07:18 > 0:07:21So, we've got two weeks and two days to go.
0:07:21 > 0:07:23Occupation's going really well,
0:07:23 > 0:07:25which is our term for getting stocked up.
0:07:25 > 0:07:28Certainly, the anticipation, the excitement's in my stomach already.
0:07:28 > 0:07:31You know, you're starting to get the butterfly feeling.
0:07:31 > 0:07:32Can you tell me if it's straight?
0:07:32 > 0:07:34It's not bad. Just move this way a tiny bit.
0:07:34 > 0:07:37There's always a few glitches and always a few things that get
0:07:37 > 0:07:40thrown in along the way, but that's all part of the fun, isn't it?
0:07:40 > 0:07:41LAUGHTER
0:07:41 > 0:07:45- Just need to watch that china. - Oh, my goodness me!
0:07:45 > 0:07:46GLASS SHATTERS
0:07:46 > 0:07:47EMPLOYEES CHUCKLE
0:07:50 > 0:07:52The big day arrives.
0:07:52 > 0:07:54CHEERING AND APPLAUSE
0:07:55 > 0:07:58Good morning, John Lewis Birmingham!
0:07:58 > 0:08:00CHEERING AND APPLAUSE
0:08:01 > 0:08:05'I've come along to see how this store will work
0:08:05 > 0:08:07'for the Amazon generation.'
0:08:07 > 0:08:10There's nearly an hour to go before the store opens, and a small
0:08:10 > 0:08:15but hardcore group of fans has already started forming.
0:08:15 > 0:08:17I don't know about you,
0:08:17 > 0:08:21but I'm not entirely sure I'd get out of bed for this.
0:08:22 > 0:08:26Is it worth queuing up early in the morning for a store opening?
0:08:26 > 0:08:28Absolutely, yes.
0:08:28 > 0:08:32I've heard that they look after their staff very, very well,
0:08:32 > 0:08:34and because they look after their staff, it projects
0:08:34 > 0:08:37into customers, which will then, of course,
0:08:37 > 0:08:39allow their customers to spend loads of money.
0:08:40 > 0:08:42Meanwhile, inside the store,
0:08:42 > 0:08:47Lisa works the 650 staff into a well-managed frenzy.
0:08:47 > 0:08:49I think, if I had to describe how I was feeling,
0:08:49 > 0:08:52it's great excitement, and great pride.
0:08:52 > 0:08:55So, let's make John Lewis proud and be Birmingham.
0:08:55 > 0:08:57CHEERING
0:08:57 > 0:08:59'With minutes to go till opening time,
0:08:59 > 0:09:01'I've got swept along with it all.'
0:09:01 > 0:09:03OK, ladies, here we go!
0:09:03 > 0:09:05SHOPPING HUBBUB
0:09:07 > 0:09:08Need to move back.
0:09:09 > 0:09:12Look at the queue! Oh, my days. Whoa!
0:09:13 > 0:09:19- CROWD:- Six, five, four, three, two, one!
0:09:19 > 0:09:20CHEERING AND WHISTLING
0:09:26 > 0:09:27Look at this.
0:09:31 > 0:09:33It's very shiny, and very new,
0:09:33 > 0:09:36and perhaps even a little inspirational.
0:09:36 > 0:09:41'And yes, it's already a bit Christmassy.'
0:09:41 > 0:09:42Aw!
0:09:43 > 0:09:45Do you like this shop?
0:09:45 > 0:09:46What do you like about this shop?
0:09:47 > 0:09:49Erm, this.
0:09:49 > 0:09:52- Do you think it's a bit early for Christmas shopping?- Yeah.
0:09:53 > 0:09:56'But Ophelia's mum doesn't think so.'
0:09:56 > 0:09:59I'm just double checking, but it is still September, yes?
0:09:59 > 0:10:00Yep. It wouldn't be John Lewis
0:10:00 > 0:10:03if it didn't have a Christmas section, though, would it?
0:10:03 > 0:10:05On par with Marks & Spencer's, probably.
0:10:05 > 0:10:07I think it makes Christmas really special to come to John Lewis.
0:10:07 > 0:10:09And now we've got it, the department store,
0:10:09 > 0:10:12they'll have the Father Christmas, and there'll be queues,
0:10:12 > 0:10:15and I think it's going to really make Birmingham.
0:10:15 > 0:10:18Does it translate into you coming into the store
0:10:18 > 0:10:20and parting with your cash as a result?
0:10:20 > 0:10:22Yes, but probably not as much as they'd want me to.
0:10:22 > 0:10:25I might spend the whole day here just for the experience
0:10:25 > 0:10:26and only come away with one thing.
0:10:26 > 0:10:28Oh, dear.
0:10:28 > 0:10:31It goes to show, you can make your store all inspirational,
0:10:31 > 0:10:34but it might not actually make you much money.
0:10:34 > 0:10:37What is to stop someone going into John Lewis, browsing,
0:10:37 > 0:10:39enjoying the Christmas atmosphere,
0:10:39 > 0:10:43and then going home and ordering it online from somebody else?
0:10:43 > 0:10:46The technical answer to your question is absolutely nothing.
0:10:46 > 0:10:47Always been the case.
0:10:47 > 0:10:50They could go and get wonderful advice from one my selling partners
0:10:50 > 0:10:53then go and buy it from somebody else. Ever been the case.
0:10:53 > 0:10:56So the answer is, there's a sort of notion of brand loyalty
0:10:56 > 0:10:58amongst our customers which says,
0:10:58 > 0:11:02"John Lewis has given that for me - I'll follow that up with loyalty."
0:11:02 > 0:11:05If it's brand loyalty that helps make it all work,
0:11:05 > 0:11:08John Lewis isn't leaving anything to chance.
0:11:08 > 0:11:12£35 million may buy a shiny new flagship store -
0:11:12 > 0:11:17another £7 million buys a Christmas marketing campaign.
0:11:17 > 0:11:20# All my little plans and schemes... #
0:11:20 > 0:11:23Ah, the tear-jerking John Lewis ad -
0:11:23 > 0:11:25a Christmas tradition as old as...
0:11:25 > 0:11:28Well, as old as 2007.
0:11:28 > 0:11:33Last year's effort was watched a whopping 26 million times on YouTube.
0:11:36 > 0:11:39But other retailers aren't sitting idly by.
0:11:39 > 0:11:40Happy Christmas.
0:11:40 > 0:11:45Sainsbury's got 18 million views for this heart-wrenching epic.
0:11:46 > 0:11:50This year, the ad wars are expected to be even fiercer.
0:11:50 > 0:11:55The John Lewis Christmas ad is anticipated hotly.
0:11:55 > 0:11:58Are there dangers in that? Has it become too big?
0:11:58 > 0:12:02There's a danger that we have to surpass it every year.
0:12:02 > 0:12:03How are you ever going to do that?
0:12:03 > 0:12:08Well, I have a brilliant marketing director who deals with that.
0:12:08 > 0:12:11And that marketing director is Craig Inglis,
0:12:11 > 0:12:14the man responsible for nearly all their Christmas ads.
0:12:14 > 0:12:19Back in about 2008, we saw that affinity to the John Lewis brand
0:12:19 > 0:12:21was based on trust and reliability
0:12:21 > 0:12:23as opposed to an emotional connection,
0:12:23 > 0:12:25and so it felt like there was an opportunity for us
0:12:25 > 0:12:27to connect much more, especially at Christmas,
0:12:27 > 0:12:29a very emotional time of the year.
0:12:29 > 0:12:34And so that was really the genesis of us trying to create a storyline,
0:12:34 > 0:12:37a narrative, that could be naturally more emotional.
0:12:37 > 0:12:39As you may know by now,
0:12:39 > 0:12:43this year's advert is about a man who lives on the moon.
0:12:43 > 0:12:45John Lewis is spending £1 million to make it,
0:12:45 > 0:12:48and another £6 million buying advertising space.
0:12:50 > 0:12:52Now with two months to go till it's launched,
0:12:52 > 0:12:55Craig is visiting the set where it will be shot.
0:12:55 > 0:12:58He's joined by head of brand marketing, Rachel Swift.
0:12:58 > 0:13:00- So have we got a shoot schedule? - Yeah.
0:13:03 > 0:13:05One last question before cameras start rolling -
0:13:05 > 0:13:07how would the man on the moon be dressed?
0:13:07 > 0:13:11- We'll just quickly have a look at Jean.- Hi, Jean.- Hi, Jean.- Nice to meet you.- This is Craig.
0:13:11 > 0:13:15- How are you?- Hi. Lovely to meet you. How are you?- And Ben.
0:13:15 > 0:13:17Hello.
0:13:17 > 0:13:20We're just looking at his wardrobe. What we're going to do is,
0:13:20 > 0:13:22- dress sparkle on set to camera. - Yeah.
0:13:22 > 0:13:25When he's doing his chores, no vest, just the braces.
0:13:25 > 0:13:28- Yeah.- Yeah.- The pictures that I looked at last night,
0:13:28 > 0:13:31- just straight out of the box, I was like, boom, boom, boom. - Definitely, yeah.
0:13:31 > 0:13:35Ben Priest is executive creative director of the ad agency.
0:13:35 > 0:13:37When Marlon Brando dies in The Godfather in the garden,
0:13:37 > 0:13:40and he's wearing braces and the done-up shirt and the old trousers,
0:13:40 > 0:13:43- and I think there's a...- We can just have this, but we've got... It's up to you.
0:13:43 > 0:13:45- Spot-on.- It looks great.
0:13:45 > 0:13:46Looks fantastic.
0:13:46 > 0:13:49Again, just like the set, it's that perfect balance.
0:13:49 > 0:13:52I think we can mix it up a bit. What are you thinking?
0:13:52 > 0:13:54Very good. It's great.
0:13:56 > 0:13:58They've done enough preparation
0:13:58 > 0:14:01to make a whole movie about the man on the moon.
0:14:01 > 0:14:04Oh, I love it!
0:14:04 > 0:14:05All the different lights.
0:14:05 > 0:14:09- Incredible attention to detail. - It is unbelievable.
0:14:10 > 0:14:14It does make you wonder - this IS just an advert...right?
0:14:14 > 0:14:16It's a piece of entertainment. I want them to enjoy it
0:14:16 > 0:14:19and enjoy the story and connect with the story.
0:14:19 > 0:14:20I think that's the first thing.
0:14:20 > 0:14:22And start thinking about the gifts they want to buy,
0:14:22 > 0:14:26and obviously we'd quite like them to do that at John Lewis, thank you very much.
0:14:38 > 0:14:39It's Monday evening.
0:14:39 > 0:14:42In head office, they're crunching numbers.
0:14:42 > 0:14:46We know the baseline forecast, we're at 20% plus on last year.
0:14:46 > 0:14:48Is that a number we're going public with, or...?
0:14:48 > 0:14:51- Erm...- Yeah.- Yeah. - Officially saying that.
0:14:51 > 0:14:54John Lewis's leadership spends most of the year
0:14:54 > 0:14:56looking forward to Christmas.
0:14:56 > 0:15:00But they're also bracing themselves for a far newer tradition.
0:15:00 > 0:15:03..up until Black Friday, where we have a pre-Black Friday ad running,
0:15:03 > 0:15:06and a Black Friday ad launching, obviously, on the Friday.
0:15:06 > 0:15:08Uh-oh. Black Friday.
0:15:08 > 0:15:11It's only been established in Britain for three years,
0:15:11 > 0:15:14but already it's got a fearsome reputation.
0:15:14 > 0:15:16It all started in America.
0:15:16 > 0:15:18Black Friday is the day after Thanksgiving,
0:15:18 > 0:15:21which this year means November 27th.
0:15:21 > 0:15:24Last year Britons went wild for it,
0:15:24 > 0:15:27spending £1.75 billion.
0:15:27 > 0:15:29- Do you know what Black Friday is?- Yes.
0:15:29 > 0:15:33It's when everyone goes to, like, Asda and kills each other.
0:15:33 > 0:15:36The day when everyone goes crazy over prices.
0:15:36 > 0:15:37SHOUTING
0:15:37 > 0:15:38Easy, easy, easy.
0:15:38 > 0:15:40Wait!
0:15:40 > 0:15:42Wait there a minute!
0:15:44 > 0:15:47While Asda has decided to pull out of Black Friday this year,
0:15:47 > 0:15:49John Lewis is going for it.
0:15:49 > 0:15:51For the company, the danger zone
0:15:51 > 0:15:54is likely to be London's Oxford Street.
0:15:54 > 0:15:59Standing on the thin line between civilisation and savagery
0:15:59 > 0:16:01is operations manager Steve Mann.
0:16:01 > 0:16:05A lot of people have said to me that their experience of Black Friday
0:16:05 > 0:16:08is that it's barbaric, people elbowing you in the face -
0:16:08 > 0:16:11is that what it's like in here?
0:16:11 > 0:16:13It's busy, but it's in control.
0:16:13 > 0:16:14The safety is always there,
0:16:14 > 0:16:17and we have full control of the store at all times.
0:16:17 > 0:16:19Phew. That's good to know.
0:16:19 > 0:16:22Is Black Friday really that big?
0:16:22 > 0:16:24Black Friday last year took five times more
0:16:24 > 0:16:26than what we would normally take on an average day.
0:16:26 > 0:16:29But for about three hours last year we were taking a very similar amount
0:16:29 > 0:16:32on an hourly basis, and actually, we're asking ourselves,
0:16:32 > 0:16:34is that because we physically can't take any more money?
0:16:34 > 0:16:36So this year we're putting even more tills in place.
0:16:36 > 0:16:41- Obviously got a strong promotion on Tassimo at the moment.- Yes. - Good stock levels?- Absolutely.
0:16:41 > 0:16:44The worry for all big retailers
0:16:44 > 0:16:46is the risk that people will buy a whole heap of stuff
0:16:46 > 0:16:49at rock bottom prices in November
0:16:49 > 0:16:53instead of buying later at the full festive price.
0:16:53 > 0:16:56What impact does black Friday have on John Lewis
0:16:56 > 0:16:58in terms of how you prepare for Christmas?
0:16:58 > 0:17:03We used to see a steady ascent up the mountain of Christmas,
0:17:03 > 0:17:06and the peak week was the few days immediately before Christmas.
0:17:06 > 0:17:09What Black Friday has done is changed the shape
0:17:09 > 0:17:11of that mountain entirely, and last year the peak
0:17:11 > 0:17:15was actually the last week of November, Black Friday week.
0:17:15 > 0:17:17So it's changed the shape of Christmas trade.
0:17:17 > 0:17:21So bigger than Christmas? That's such a surprise. That's bonkers.
0:17:23 > 0:17:26The place which will feel that change more than anywhere else
0:17:26 > 0:17:29is the company's largest distribution centre,
0:17:29 > 0:17:32Magna Park One, near Milton Keynes.
0:17:32 > 0:17:34Hiya, how you doing? You all right? Good?
0:17:35 > 0:17:40Its boss, Andy Furr, has spent years managing the Christmas rush.
0:17:41 > 0:17:42I love Christmas.
0:17:42 > 0:17:45I was born on Christmas Day - of course I'd like Christmas.
0:17:45 > 0:17:47Christmas is a fantastic time of year.
0:17:47 > 0:17:50We try and inject a bit of spirit and fun for that Christmas rush.
0:17:50 > 0:17:54Keeping the team's spirits up is one of the keys to our success.
0:17:54 > 0:17:57Gents, how we doing? All right? Gaskill, have you done your make-up?
0:17:57 > 0:18:01This £160-million site
0:18:01 > 0:18:05plays a crucial role in the company's battle for Christmas sales.
0:18:05 > 0:18:07It's here where they store stock
0:18:07 > 0:18:10and send it out to branches and online customers.
0:18:15 > 0:18:19These boxes are customer orders. Just look at the vast range of products we've got -
0:18:19 > 0:18:21that's the breadth of assortment that the Partnership deals with.
0:18:21 > 0:18:24So at the moment there's a lot of ladies' shoes coming through,
0:18:24 > 0:18:27so a lot of our female customers are going out on the razz.
0:18:27 > 0:18:30But coinciding with that there are male shoes in there as well,
0:18:30 > 0:18:32so I don't want to be too constrained to one individual.
0:18:32 > 0:18:38In September, Magna Park normally processes 2,000 items every hour.
0:18:38 > 0:18:43During the week of Black Friday, that more than quadruples.
0:18:43 > 0:18:46I know that Black Friday is coming soon.
0:18:46 > 0:18:51It is enjoyable because I can see what people are buying.
0:18:51 > 0:18:52Sexy things like that.
0:18:52 > 0:18:55And I'm going straightaway to the John Lewis website
0:18:55 > 0:18:57to buy it for myself.
0:18:57 > 0:19:00But not everyone in the Magna Park family
0:19:00 > 0:19:02is quite so optimistic about Black Friday.
0:19:02 > 0:19:04Morning.
0:19:04 > 0:19:06Two to three years ago, it was all quite calm.
0:19:06 > 0:19:09What Black Friday has done is completely turn on its head.
0:19:09 > 0:19:11The volumes are just frightening.
0:19:11 > 0:19:15How do I feel about it? Petrified. Petrified.
0:19:16 > 0:19:20- How we doing?- Yeah, very well. - All set? Ready to crack the whip?
0:19:20 > 0:19:22So Andy is going to stress test the system,
0:19:22 > 0:19:25processing a whole day's orders in just two hours.
0:19:25 > 0:19:28The ultimate aim of today is to try and replicate,
0:19:28 > 0:19:30in a very short period of time,
0:19:30 > 0:19:32some resemblance to what Black Friday will look like.
0:19:32 > 0:19:34And try and break the kit.
0:19:35 > 0:19:39As you can see now, the orders have started coming across the bridge.
0:19:39 > 0:19:41As more of us shop online,
0:19:41 > 0:19:44getting orders to our homes on time has become a huge test
0:19:44 > 0:19:46for all of Britain's stores.
0:19:46 > 0:19:50Last Black Friday, Marks & Spencer's distribution centre
0:19:50 > 0:19:52was overwhelmed by the challenge,
0:19:52 > 0:19:55and their next-day delivery service collapsed.
0:19:55 > 0:19:58And already we're experiencing a problem.
0:19:58 > 0:20:01You can see a guy there that we've got manually intervening now.
0:20:01 > 0:20:03That's a real big tick in the box for us.
0:20:03 > 0:20:06That's something that puts a smile on my face,
0:20:06 > 0:20:07is that we've found the problem.
0:20:07 > 0:20:09Don't rectify it any more, yeah?
0:20:09 > 0:20:11Let it build up, get an engineer down now.
0:20:11 > 0:20:14Got a crash showing at station 1028
0:20:14 > 0:20:17and 1109, if you could take a look for us.
0:20:17 > 0:20:19The problems Andy uncovers today
0:20:19 > 0:20:22will allow him to know exactly where improvements are needed
0:20:22 > 0:20:25before the busy period kicks in.
0:20:25 > 0:20:28Are you on your own? Are you on your own?
0:20:28 > 0:20:30Is there a problem at that M28?
0:20:31 > 0:20:33Simon, what you done?
0:20:33 > 0:20:36But the crashes soon start racking up -
0:20:36 > 0:20:39perhaps a little faster than Andy expected.
0:20:39 > 0:20:42Do you need an engineer up there to take a look at that?
0:20:42 > 0:20:44The short-term solution is to rectify the problem
0:20:44 > 0:20:47that's in front of us now. Place somebody on a ladder
0:20:47 > 0:20:50to stand there for the next ten hours and push the totes through.
0:20:50 > 0:20:54Black Friday, there'll be two ladders there with two partners up there, pushing it through.
0:20:54 > 0:20:56We won't have the time to fix it. But hopefully,
0:20:56 > 0:20:59by finding these issues out now, we don't...
0:20:59 > 0:21:03we're not confounded with a number of these issues on Black Friday.
0:21:03 > 0:21:08And I've got toes crossed as well. Toes crossed as well. Yeah.
0:21:11 > 0:21:14It's the final chance for the leadership
0:21:14 > 0:21:16to meet up before Christmas.
0:21:16 > 0:21:19They're gathering at John Lewis's country retreat in Berkshire.
0:21:19 > 0:21:23The setting may be relaxed, but the pressure is on.
0:21:23 > 0:21:27MUSIC: Harder, Better, Faster, Stronger by Daft Punk
0:21:27 > 0:21:30Right, good morning everybody. My pleasure as ever
0:21:30 > 0:21:34to run through the partnership and divisional results.
0:21:34 > 0:21:36Managing director Andy Street
0:21:36 > 0:21:39is rehearsing his pre-Christmas address.
0:21:39 > 0:21:42But the whole point is, I don't want it to be about detailed numbers.
0:21:42 > 0:21:44It's much more tonal, this.
0:21:44 > 0:21:47We have won lots of awards,
0:21:47 > 0:21:50but we've had the challenge,
0:21:50 > 0:21:55as, of course, the complaint stats continue to confirm.
0:21:55 > 0:21:5965% increase in the complaints to me
0:21:59 > 0:22:01in the first half of the year.
0:22:01 > 0:22:05As the partners from across the empire start gathering next door,
0:22:05 > 0:22:11communications director Peter Cross has a potential crisis on his hands.
0:22:11 > 0:22:15It seems that as the business booms online, it's not easy to maintain
0:22:15 > 0:22:19John Lewis's traditional reputation for great customer service.
0:22:19 > 0:22:21So we're in the middle of launching Christmas,
0:22:21 > 0:22:23and I've just been told an article's going to run
0:22:23 > 0:22:26in a major national newspaper tomorrow morning
0:22:26 > 0:22:29in which an employee of one of our suppliers
0:22:29 > 0:22:32is making allegations about service standards
0:22:32 > 0:22:36and customer service in one of our contact centres.
0:22:36 > 0:22:41So this will send a shudder down the very backbone of the company,
0:22:41 > 0:22:43and I've got to tell the boss and tell everybody else
0:22:43 > 0:22:45that this thing's about to break.
0:22:46 > 0:22:50For now, though, he's got to put on a brave face.
0:22:50 > 0:22:53Ladies, gentlemen, fellow partners...
0:22:53 > 0:22:57John Lewis is very proud of the service it offers,
0:22:57 > 0:23:01believing its staff go the extra mile because they are part owners.
0:23:01 > 0:23:04But online orders don't necessarily arrive at your home
0:23:04 > 0:23:07care of a John Lewis partner.
0:23:07 > 0:23:11Around a third of deliveries are made by a range of outside companies.
0:23:11 > 0:23:14And if things go wrong and you call up to complain,
0:23:14 > 0:23:18often you'll find yourself talking to someone employed by Capita,
0:23:18 > 0:23:20the outsourcing company.
0:23:20 > 0:23:24The article suggests that, due to this mix of outside companies,
0:23:24 > 0:23:28John Lewis's online customers aren't always receiving
0:23:28 > 0:23:30the very best service with their deliveries.
0:23:30 > 0:23:33"We continue to receive a steady flow of complaints
0:23:33 > 0:23:36"about John Lewis where we used to see none."
0:23:40 > 0:23:43With Christmas not far away, how bad is the damage?
0:23:43 > 0:23:46Peter gathers his team.
0:23:46 > 0:23:48"Has John Lewis lost the plot?" I mean, there's no doubt about it,
0:23:48 > 0:23:52it's not ideal, is it? I mean, it's not the kind of thing
0:23:52 > 0:23:54you want to wake up to on a Saturday morning, to be quite frank.
0:23:54 > 0:23:58You were on call, Emma. Did you get anything else come through?
0:23:58 > 0:23:59There was nothing as a result of it.
0:23:59 > 0:24:02So it's really just keeping a watch on it,
0:24:02 > 0:24:04and keeping in touch with the Capita team.
0:24:04 > 0:24:06Shall we share it with the rest of the team?
0:24:06 > 0:24:09Yes, let's do that. Great. Good.
0:24:11 > 0:24:13In the age of social media,
0:24:13 > 0:24:17any complaints are quickly aired very publicly online.
0:24:18 > 0:24:20There's another bad one.
0:24:20 > 0:24:23"They then told me I would have to wait another week,
0:24:23 > 0:24:27"three weeks after I purchased, and I am still waiting for the delivery.
0:24:27 > 0:24:28"Terrible service."
0:24:28 > 0:24:31"Customer service, dreadful."
0:24:32 > 0:24:35"Surprised and disappointed."
0:24:35 > 0:24:39I think I might need someone to give me a bit of context on all of this.
0:24:39 > 0:24:41- Hi. Nice to meet you. - Nice to meet you.
0:24:41 > 0:24:43Ian Jindal is editor of InternetRetailing.
0:24:43 > 0:24:46John Lewis is widely recognised
0:24:46 > 0:24:49for having some of the best customer service available.
0:24:49 > 0:24:52However, the challenge when you start sending parcels
0:24:52 > 0:24:55directly to people's homes, the customers are savagely demanding,
0:24:55 > 0:24:59because other retailers like Amazon are teaching them
0:24:59 > 0:25:01that perfection is possible.
0:25:01 > 0:25:03So if you're used to Amazon delivering
0:25:03 > 0:25:05within two hours, half a day...
0:25:05 > 0:25:07The customer has no gratitude now.
0:25:07 > 0:25:10They don't see the complexity, they don't care about the complexity -
0:25:10 > 0:25:14they expect you to deliver according to your brand promise.
0:25:15 > 0:25:19If customer service is so important, why do you outsource call centres?
0:25:19 > 0:25:23Let's be clear - we do not outsource all of our call centres.
0:25:23 > 0:25:25If you ring one of our shops,
0:25:25 > 0:25:28you will speak to a John Lewis partner.
0:25:28 > 0:25:31If you ring for an online enquiry,
0:25:31 > 0:25:34you are likely, but not exclusively,
0:25:34 > 0:25:38to speak to an outsourced operation.
0:25:38 > 0:25:44The simple fact is that given the scale of demand there,
0:25:44 > 0:25:48we were not able to handle all of that ourselves.
0:25:48 > 0:25:50How do you react to the bad press?
0:25:50 > 0:25:52Pretty badly, actually. When you get something like that,
0:25:52 > 0:25:56there'll be part of me that says, "Oh, no, it's only a small group of customers, it's not fair."
0:25:56 > 0:25:58But my underlying reaction is,
0:25:58 > 0:26:01is this somehow a shot across the bows
0:26:01 > 0:26:04that we've got to take much greater care of something
0:26:04 > 0:26:06than maybe we have in the last few years?
0:26:07 > 0:26:10So as orders surge in the run-up to Christmas,
0:26:10 > 0:26:13it'll be more important than ever to get that right.
0:26:13 > 0:26:15One, two, one, two.
0:26:15 > 0:26:17It's the 1st October.
0:26:17 > 0:26:19# Let's hear those sleigh bells ringing
0:26:19 > 0:26:21# Ring-ting-ting-a-ling too... #
0:26:21 > 0:26:24OK, so we've got five hours to go until the stakeholder...
0:26:24 > 0:26:27Steve Mann is inspecting Oxford Street's new Christmas village.
0:26:27 > 0:26:30I know this morning we had a slight problem
0:26:30 > 0:26:32cos jelly beans are going to come into this area here.
0:26:32 > 0:26:35# Let's take the road before us... #
0:26:35 > 0:26:38With neighbour Selfridges having opened their Christmas village
0:26:38 > 0:26:40in August, the team are playing catch-up.
0:26:42 > 0:26:44It's universally known as fluffing.
0:26:44 > 0:26:46We call it, in the office, "zhuzhing",
0:26:46 > 0:26:49because a tree has to be correctly "zhuzhed"
0:26:49 > 0:26:50for it to look attractive enough.
0:26:50 > 0:26:54It takes about 45 minutes to fluff the tree to its full capacity
0:26:54 > 0:26:57to make it look as good as it can.
0:26:57 > 0:26:59There's a snag, though.
0:26:59 > 0:27:01We're going to have to clean the windows ready for tonight.
0:27:01 > 0:27:03OK, so there is a small issue with those windows.
0:27:03 > 0:27:07They're sealed shut. We're going to have to come up with a solution now
0:27:07 > 0:27:09- to work around ready for tomorrow morning.- OK.
0:27:11 > 0:27:13It's not going to be an easy job, is it?
0:27:13 > 0:27:16And sticky windows aren't their only problem
0:27:16 > 0:27:18with creating the Christmas mood.
0:27:18 > 0:27:21It all looks lovely, but it's too soon for me.
0:27:21 > 0:27:24I think they have it in the shops a bit early.
0:27:24 > 0:27:27The sun's shining outside, so definitely too early for me.
0:27:28 > 0:27:31That hasn't stopped anyone in the Birmingham branch,
0:27:31 > 0:27:33where they're tucking into mince pies,
0:27:33 > 0:27:36despite it still being October.
0:27:36 > 0:27:38LAUGHTER AND CHATTING
0:27:39 > 0:27:41For most of the staff here,
0:27:41 > 0:27:44it will be their first Christmas with the company.
0:27:45 > 0:27:50OK, so, we've got some real key events that we can capitalise on.
0:27:50 > 0:27:52And under the eye of manager Lisa Williams,
0:27:52 > 0:27:55they're learning the tricks of festive trade.
0:27:55 > 0:27:57And if you think about receiving a John Lewis gift card
0:27:57 > 0:28:01on Christmas day, customers spend 73% more
0:28:01 > 0:28:03than the value of the gift card.
0:28:03 > 0:28:06That is a really powerful figure.
0:28:06 > 0:28:09So don't forget we do have a gift card.
0:28:10 > 0:28:12Out on the shop floor, the new partners
0:28:12 > 0:28:14are getting ready for the Christmas rush.
0:28:14 > 0:28:18In the toy department, Laura is just settling in.
0:28:18 > 0:28:21I've been working here for about five weeks now.
0:28:21 > 0:28:26I have to know all the different toys, different characters.
0:28:26 > 0:28:30This is the Millennium Falcon, which is the main ship in Star Wars.
0:28:30 > 0:28:34I've had to go home and research all those characters - Chewbacca, R2-D2.
0:28:34 > 0:28:37I'm slowly starting to know them all,
0:28:37 > 0:28:40but I'm sure it's going to take a bit of time.
0:28:40 > 0:28:43Meanwhile, former sports retailer Ray
0:28:43 > 0:28:45is trying to master the rest of the range.
0:28:48 > 0:28:50OK, so what it does, it moves and it makes a sound.
0:28:50 > 0:28:53And it's very popular with young girls.
0:28:55 > 0:28:58The new staff will have to get ready fast.
0:28:59 > 0:29:01Downstairs in the gift department,
0:29:01 > 0:29:05the most organised Christmas shoppers are already on the case.
0:29:05 > 0:29:08I have to buy about 85, 90 presents in total,
0:29:08 > 0:29:12so I'm hoping to have all of them bought and wrapped by mid-November.
0:29:12 > 0:29:15If I'm looking for chocolates, I'll either come here
0:29:15 > 0:29:19or I'll go to Thornton's. I quite like Thornton's, or Hotel Chocolat.
0:29:19 > 0:29:21I do like to shop around and get a bargain.
0:29:21 > 0:29:24I'll just go wherever the prices are better, really.
0:29:24 > 0:29:26I'll just go online and look at who's competitive.
0:29:29 > 0:29:32In mid-October, Christmas shoppers
0:29:32 > 0:29:35are still a rare sighting in the John Lewis stores.
0:29:35 > 0:29:39The company's website is already feeling the rush, though.
0:29:39 > 0:29:43By now, "Christmas" has become the most searched term on the site.
0:29:43 > 0:29:47How we surface those around the home page
0:29:47 > 0:29:49is definitely something I think we should look at.
0:29:49 > 0:29:51And while the John Lewis team in head office
0:29:51 > 0:29:53spruce up their online presence,
0:29:53 > 0:29:56their rivals are also jockeying for position
0:29:56 > 0:29:59to capture the seasonal market.
0:30:00 > 0:30:03Over on Amazon, they start promoting a big discount
0:30:03 > 0:30:08on Prime membership to try and woo customers ahead of Black Friday.
0:30:08 > 0:30:10Meanwhile, Argos shocks the market
0:30:10 > 0:30:13by offering nationwide same-day delivery,
0:30:13 > 0:30:15although not long after,
0:30:15 > 0:30:17its website crashes.
0:30:17 > 0:30:20And beneath it all, there's a secret war raging
0:30:20 > 0:30:22over online search results.
0:30:22 > 0:30:26How do you get yourself to number one?
0:30:26 > 0:30:30The retail battleground has shifted from just the store
0:30:30 > 0:30:33into our hands and under our fingers.
0:30:33 > 0:30:37So if you take, for example, a query like "Christmas gifts for him"
0:30:37 > 0:30:40and just go to Google and say, tell me what the answer is.
0:30:40 > 0:30:43So many people must type this into Google every single year,
0:30:43 > 0:30:45- I know I do, in a panic.- Absolutely.
0:30:45 > 0:30:48And so the top few are paid ads,
0:30:48 > 0:30:52and the first result in a natural search is Not On The High Street -
0:30:52 > 0:30:55"Range of Christmas gifts for men, look no further."
0:30:55 > 0:30:58Debenhams has a slightly more functional approach -
0:30:58 > 0:31:01"perfect gift, more arriving weekly."
0:31:01 > 0:31:04It's a battleground in that sort of top ten.
0:31:04 > 0:31:07So how do you get to the top?
0:31:07 > 0:31:12- Well, if I knew then I'd be on an island somewhere.- Very rich man!
0:31:12 > 0:31:14So the first thing they look for are the words.
0:31:14 > 0:31:18Millions and millions and millions of phrases and key words
0:31:18 > 0:31:22have to be put into Google months in advance
0:31:22 > 0:31:24in order to answer your question.
0:31:24 > 0:31:28So each retailer has dedicated teams to try and increase the likelihood
0:31:28 > 0:31:30that you'll be one of those top hits?
0:31:30 > 0:31:32Absolutely. Then you need real people to say,
0:31:32 > 0:31:37"Hey, if you want Christmas gifts, go to John Lewis," or whoever,
0:31:37 > 0:31:39and so if you click on it, it must be real,
0:31:39 > 0:31:42therefore I'll notch that one up as being more relevant.
0:31:42 > 0:31:45So you reaffirm Google's idea that this is a real answer.
0:31:45 > 0:31:48It's always listening. That's the new retailing challenge.
0:31:48 > 0:31:51I imagine that this is vital for a retailer to get right.
0:31:51 > 0:31:52It's fundamental.
0:31:52 > 0:31:56If John Lewis wants to be top of people's Christmas internet searches
0:31:56 > 0:31:59then the advert will have to win plenty of hearts and minds.
0:32:00 > 0:32:03But with just five weeks to go till launch,
0:32:03 > 0:32:06Ben's showing an early version to Craig
0:32:06 > 0:32:08and there's not a moist eye in the house.
0:32:08 > 0:32:11So, erm...
0:32:11 > 0:32:13I guess my big question is, er...
0:32:13 > 0:32:15I don't think it's having quite the impact
0:32:15 > 0:32:17I thought it would have at this point.
0:32:17 > 0:32:22So the point was whether you feel emotionally connected to him
0:32:22 > 0:32:24if you see him from behind waving at the Earth -
0:32:24 > 0:32:26as beautiful a scene as it is, which I completely accept.
0:32:26 > 0:32:28We can look at all of the waves we have
0:32:28 > 0:32:32and all of the mid-moments that we have where he's happy
0:32:32 > 0:32:34but that's not... That was the best...
0:32:34 > 0:32:37I just think you want to imagine how he's feeling.
0:32:37 > 0:32:40I don't want the last image of him to be potentially quite a sad one,
0:32:40 > 0:32:42cos in the end he's still on his own.
0:32:42 > 0:32:44It somehow emphasises the fact that he's there,
0:32:44 > 0:32:47whereas I love that - you know, he's waving back to Earth.
0:32:47 > 0:32:49I'm not saying I don't love that.
0:32:49 > 0:32:51It's just, do you need something first,
0:32:51 > 0:32:53just to subconsciously reassure you?
0:32:53 > 0:32:55I think the viewer will think he's happy.
0:32:55 > 0:32:58- He feels happy to me when he's waving.- I'd like to see it.- Yeah.
0:33:00 > 0:33:02We'll have to agree to disagree on the end point for now,
0:33:02 > 0:33:04- but let's just look at it. - Yeah, course.
0:33:04 > 0:33:08- And let's see where we get to.- Yeah. - OK, anything else?
0:33:10 > 0:33:14- It's in good shape.- Really good.- I mean, I know we have these meetings and we go through in great detail.
0:33:14 > 0:33:18- I don't want you to feel like I'm not happy.- Thanks, guys. - Thank you very much. Thank you.
0:33:24 > 0:33:28# It's beginning to look a lot like Christmas... #
0:33:28 > 0:33:30With the advert not quite there,
0:33:30 > 0:33:33at least the company can fall back on a time-honoured technique
0:33:33 > 0:33:37to hint that now might be a good time to start buying presents.
0:33:37 > 0:33:39Hold it!
0:33:39 > 0:33:42Decorating the stores nationwide is a huge job,
0:33:42 > 0:33:47taking 36 days and nights to put up 200 truckloads of decorations.
0:33:47 > 0:33:49Wait, wait, wait, wait.
0:33:49 > 0:33:54# Toys in every store... #
0:33:54 > 0:33:57Boasting almost a million individual lights,
0:33:57 > 0:34:01it might even be enough to entice the most jaded of shoppers.
0:34:02 > 0:34:05You'd be amazed at how many people don't even see us.
0:34:16 > 0:34:19The night of the big switch on arrives.
0:34:19 > 0:34:22Is it possible that you can get the key to the canopy
0:34:22 > 0:34:25- and I'll meet you on the first floor?- Yeah, that's received.
0:34:25 > 0:34:28Steve and his team in London's Oxford Street
0:34:28 > 0:34:30are feeling a heavy sense of responsibility.
0:34:30 > 0:34:32Right, guys, got the keys to the canopy.
0:34:32 > 0:34:35- You all right to show us out there?- Yeah, of course.
0:34:37 > 0:34:41For London and across the world, Oxford Street turning the lights on is the start of Christmas,
0:34:41 > 0:34:44so the magic will come to life tonight when we press the button.
0:34:44 > 0:34:47Kylie Minogue will be lighting up the whole of Oxford Street.
0:34:47 > 0:34:50Hopefully we switch that on exactly the same time as Kylie,
0:34:50 > 0:34:51and the magic of all of Oxford Street
0:34:51 > 0:34:53being lit up at the same time.
0:34:53 > 0:34:55Fingers crossed it'll all be good,
0:34:55 > 0:34:59and the whole wall of lights will light up, and Christmas starts here.
0:34:59 > 0:35:03Just to confirm, is everyone by their switches? Over.
0:35:03 > 0:35:05Hi, Steve, in place. Over.
0:35:09 > 0:35:13'OK, we're now going to do a real test, over.'
0:35:14 > 0:35:16Hattie, are you in place?
0:35:17 > 0:35:19'I can't get in the room.'
0:35:19 > 0:35:21Don't make me panic.
0:35:22 > 0:35:25'Does anybody know the code for the room with the switch in?'
0:35:25 > 0:35:30With seconds to spare, all the staff finally make it into position.
0:35:30 > 0:35:32It looks like John Lewis will light up
0:35:32 > 0:35:35at the same time as Oxford Street after all.
0:35:35 > 0:35:37So Kylie Minogue has now gone on stage.
0:35:39 > 0:35:41So just to confirm, I will do a countdown.
0:35:41 > 0:35:45'Hi, Steve. Just checking you can hear me. Over.'
0:35:45 > 0:35:47Yeah, I can hear you loud and clear.
0:35:47 > 0:35:51'Ten, nine, eight...'
0:35:52 > 0:35:55..six, five, four,
0:35:55 > 0:35:59three, two, one,
0:35:59 > 0:36:01switch on.
0:36:08 > 0:36:11I can confirm all the lights across the front are looking fantastic,
0:36:11 > 0:36:13so thank you, everyone.
0:36:13 > 0:36:14Perfect.
0:36:14 > 0:36:16Well, almost...
0:36:16 > 0:36:18Yeah, that is a major cockup.
0:36:18 > 0:36:21As Kylie pressed the button, our lights switched on,
0:36:21 > 0:36:23the same as all the other retailers down the street,
0:36:23 > 0:36:26but for whatever reason, Oxford Street on this part
0:36:26 > 0:36:28hasn't been switched on.
0:36:28 > 0:36:30They're too busy cocktailing with Kylie Minogue,
0:36:30 > 0:36:32that's what they're doing.
0:36:33 > 0:36:35- I've never seen that happen before. - HE LAUGHS
0:36:40 > 0:36:43Once Oxford Street has got its act together,
0:36:43 > 0:36:45I pop down to have a look.
0:36:45 > 0:36:48And I'm noticing a new and unfamiliar feeling.
0:36:51 > 0:36:52I have to admit,
0:36:52 > 0:36:56I think I might be starting to feel a little bit Christmassy.
0:37:01 > 0:37:04All the stores on Britain's most famous shopping street
0:37:04 > 0:37:09are now in full Christmas mode, competing for our custom.
0:37:09 > 0:37:12Some of us don't need much persuading.
0:37:12 > 0:37:14Is it like a little twinkling nudge?
0:37:14 > 0:37:17- Just like, "Go on, then. Go on, it's Christmas."- Yeah, "Spend money."
0:37:17 > 0:37:20- "Go on, it's Christmas time," even though it's two months away.- Yeah.
0:37:20 > 0:37:23What did you buy? Can I have a snoop in your bag?
0:37:23 > 0:37:26- Just a book.- OK, a book. Who's that for?
0:37:26 > 0:37:28- It's for me.- And what else is there?
0:37:28 > 0:37:30Um, make up and a necklace.
0:37:30 > 0:37:33- And who's that for?- For me. - So all for you!- All for me.
0:37:33 > 0:37:36Is it really Christmas shopping, or is it just shopping?
0:37:36 > 0:37:38Christmas shopping for me.
0:37:38 > 0:37:41Clearly the effect is working for Selfridges,
0:37:41 > 0:37:44but not everyone is feeling that glow.
0:37:44 > 0:37:46Can we ask you a question about Christmas? No. No.
0:37:46 > 0:37:49Documentary for BBC Two about Christmas... Eurgh.
0:37:49 > 0:37:51Do they make you feel Christmassy?
0:37:51 > 0:37:54- No, I don't like it at all. - Why?- I think it's very commercial.
0:37:54 > 0:37:56Are they making you feel Christmassy?
0:37:56 > 0:37:59No. It's just not enough Christmas spirit.
0:37:59 > 0:38:02Normally all the songs are chiming, all the lights are along the shops.
0:38:02 > 0:38:04They're not doing much of an effort.
0:38:04 > 0:38:09The front windows of John Lewis are looking a little understated.
0:38:09 > 0:38:11At least, until the ad is launched.
0:38:21 > 0:38:24Good afternoon.
0:38:24 > 0:38:27The next day, and Craig is hoping that Ben and his team
0:38:27 > 0:38:29have got the ending right.
0:38:29 > 0:38:32I was really worried about the man in the moon appearing lonely at the end of the ad
0:38:32 > 0:38:36and there being a sense of sadness, and that's not the feeling we want to leave our viewers with
0:38:36 > 0:38:39at the end. You know, it's Christmas and we want them to be happy.
0:38:39 > 0:38:43So we spent a lot of time just working through real detail, it's all in the detail.
0:38:43 > 0:38:45Right, welcome. We're in the final week
0:38:45 > 0:38:47and we wanted to take you through
0:38:47 > 0:38:51what hopefully will be the final tweaks, changes and improvements.
0:38:51 > 0:38:53Let's have a look and see.
0:38:53 > 0:38:54Thanks, guys.
0:38:56 > 0:39:00# I would like to leave this city... #
0:39:00 > 0:39:04Craig and Rachel must launch the all-important ad in three days' time.
0:39:04 > 0:39:07So if Ben hasn't dealt with their concerns
0:39:07 > 0:39:10about the man on the moon's psychological state,
0:39:10 > 0:39:13it could mean some late nights.
0:39:13 > 0:39:16# I don't feel down... #
0:39:16 > 0:39:18The plan?
0:39:18 > 0:39:21To superimpose some cheery balloons onto the final shot.
0:39:21 > 0:39:23What it is is cos it's got that little move on it,
0:39:23 > 0:39:25so you do feel like you're concentrating on him,
0:39:25 > 0:39:28so that final shot, it's sort of contact, him...
0:39:28 > 0:39:31It's just a connection between him and the Earth
0:39:31 > 0:39:34so that you don't feel that he's going to be desperately lonely.
0:39:34 > 0:39:36And I think it really works.
0:39:36 > 0:39:38I was, as you know, very worried about that final scene
0:39:38 > 0:39:42and I just think it doesn't cross your mind now.
0:39:42 > 0:39:45- Great.- It's a very subtle thing but it makes a big difference.
0:39:45 > 0:39:48Well, I think... I think we might have a signed-off ad.
0:39:48 > 0:39:50LAUGHTER
0:39:50 > 0:39:52Hallelujah! There will be a Christmas.
0:39:52 > 0:39:54I can relax, till Jan 1st and start again.
0:39:54 > 0:39:56A full three days to go.
0:40:01 > 0:40:036am in head office.
0:40:04 > 0:40:08Before it's shown on TV, the ad is first posted online.
0:40:10 > 0:40:12With two hours to go before launch,
0:40:12 > 0:40:15the team are stoking the fires of social media
0:40:15 > 0:40:17to ensure as much buzz as possible.
0:40:19 > 0:40:22Peter begins the day with more traditional media.
0:40:22 > 0:40:24- How cool is that? Rachel, did you hear that?- No, what's that?
0:40:24 > 0:40:27"The competition between retailers over their Christmas adverts
0:40:27 > 0:40:30"has been described as an arms race."
0:40:30 > 0:40:33- Wow.- How cool is that? - Quite intense, isn't it?
0:40:33 > 0:40:36ETA people, 15 mins.
0:40:36 > 0:40:38So are we going to go a little bit early?
0:40:38 > 0:40:39I think it would be good if we could.
0:40:39 > 0:40:41That'd be about five minutes before.
0:40:41 > 0:40:46We all realise that social media is now the new media
0:40:46 > 0:40:49and everybody is now a journalist.
0:40:49 > 0:40:52So the power of social media to drive brand engagement
0:40:52 > 0:40:55is just getting bigger and bigger and bigger.
0:40:55 > 0:40:57The ad actually hasn't even launched yet on telly,
0:40:57 > 0:41:01and we're all sitting here just watching people responding to it.
0:41:01 > 0:41:04The team needs to make sure that the ad drops
0:41:04 > 0:41:09on all the big social media platforms at the same time.
0:41:09 > 0:41:11- Ready?- Yeah.- Yeah.
0:41:11 > 0:41:14So we're posting it on Twitter, YouTube and Facebook.
0:41:16 > 0:41:18I'm getting... I'm getting an error.
0:41:20 > 0:41:21You've got an error, you're saying?
0:41:21 > 0:41:24- No, it's working now. We're fine. - Well done.
0:41:25 > 0:41:27Within a quarter of an hour,
0:41:27 > 0:41:31the advert is the number one trending topic on Twitter in the UK.
0:41:31 > 0:41:35Half an hour later, it's number one worldwide.
0:41:35 > 0:41:38- Right, I need to post it to my mum. - Yeah!
0:41:38 > 0:41:40# I've been lost, I've been found... #
0:41:40 > 0:41:44And that night, it goes out on TV for the first time.
0:41:44 > 0:41:46I love it. It's a very cool advert.
0:41:46 > 0:41:49It's part of the excitement in the run-up to Christmas. It really is.
0:41:49 > 0:41:52But not quite everyone is won over by the balloons.
0:41:54 > 0:41:57It just felt like that poor old man is on the moon all on his own.
0:41:57 > 0:41:59'Hello, fire service.'
0:41:59 > 0:42:01A week later Sainsbury's fights back,
0:42:01 > 0:42:05this time with the misadventures of a children's favourite.
0:42:08 > 0:42:09And by mid-December,
0:42:09 > 0:42:13Mog's YouTube views would nudge ahead of the man on the moon.
0:42:15 > 0:42:17As for Aldi...
0:42:17 > 0:42:19I like this one...
0:42:19 > 0:42:22..one of their ads has a very familiar feel.
0:42:26 > 0:42:30Are you vexed or flattered that Aldi did a spoof of your advert?
0:42:30 > 0:42:32- Flattered.- Really?- Yeah. No, it's really amusing.
0:42:32 > 0:42:35- It's funny. They've done a good job. - Did you like it?- Yeah, it's great.
0:42:35 > 0:42:39It's so moving. I have to say, you got me, again.
0:42:39 > 0:42:42- You got me.- Good. Did it make you cry?- Why do you want to do that?!
0:42:42 > 0:42:47Why is it that every year you want to burrow into my emotions?
0:42:47 > 0:42:50Emotional advertising works. It's well proven in science.
0:42:50 > 0:42:52The cynical side of me thinks,
0:42:52 > 0:42:55"I don't want to be played. I don't want to be manipulated."
0:42:55 > 0:42:58We really worry that through the year, as we're going through the process,
0:42:58 > 0:43:01and make sure it doesn't get into that cynicism territory.
0:43:01 > 0:43:06Cynical or not, the advert is certainly designed to get us
0:43:06 > 0:43:10to go out and buy carefully chosen, indulgent gifts.
0:43:11 > 0:43:14# In the wee small hours... #
0:43:14 > 0:43:16Come the end of November, though,
0:43:16 > 0:43:19we're all swept up in a very different mood.
0:43:20 > 0:43:22Brace yourselves!
0:43:22 > 0:43:25Yeah, you know it is - it's Black Friday,
0:43:25 > 0:43:27the annual holiday shopping binge.
0:43:27 > 0:43:28Has this become a global phenomenon?
0:43:28 > 0:43:32# A little less conversation A little more action, please... #
0:43:32 > 0:43:33It's just turned midnight,
0:43:33 > 0:43:36and John Lewis has already leapt into action.
0:43:36 > 0:43:39Just one competitor's saying 1am launch,
0:43:39 > 0:43:41so I'll send you the details.
0:43:41 > 0:43:42Yeah, please do.
0:43:42 > 0:43:46The company has always promised that it is never knowingly undersold,
0:43:46 > 0:43:48and that it will match a high-street competitor
0:43:48 > 0:43:50when it has a sale.
0:43:50 > 0:43:54On Black Friday, when almost all the shops slash their prices,
0:43:54 > 0:43:57John Lewis is a bit trapped.
0:43:57 > 0:44:01How do you feel about Black Friday becoming such a huge thing in the UK?
0:44:01 > 0:44:05Well, I suppose my truthful answer is, I wish it had never happened.
0:44:05 > 0:44:07But if you look at it over the long term,
0:44:07 > 0:44:09it is definitely a blessing,
0:44:09 > 0:44:12because it is just a wonderful opportunity to prove
0:44:12 > 0:44:16that we genuinely will never be beaten on price.
0:44:16 > 0:44:18# A little more bite A little less bark
0:44:18 > 0:44:20# A little less fight A little more spark
0:44:20 > 0:44:24# Close your mouth and open up your heart, and baby, satisfy me. #
0:44:24 > 0:44:26Birmingham, 6:45am.
0:44:26 > 0:44:29Lisa's team are in early to change the prices
0:44:29 > 0:44:31on vast swathes of their products.
0:44:31 > 0:44:34I woke up at 3:20, I have to admit.
0:44:34 > 0:44:36Massive day, everybody in today.
0:44:36 > 0:44:40It almost feels like launch day back on the 24th September.
0:44:40 > 0:44:44Andy Street arrives to check that his new store is all ready
0:44:44 > 0:44:46for the expected shopping frenzy.
0:44:46 > 0:44:49This has been planned for months and months and months.
0:44:49 > 0:44:51So what are the deals with our suppliers?
0:44:51 > 0:44:53What's the capacity on the website?
0:44:53 > 0:44:55What's the flow of product through our distribution centre?
0:44:55 > 0:44:58My teams across the country have been literally working on this
0:44:58 > 0:44:59since the last one.
0:44:59 > 0:45:01You ready, Lisa?
0:45:01 > 0:45:03There's a nice little queue building.
0:45:03 > 0:45:07Very orderly, though. This is very John Lewis. Yes, very orderly.
0:45:18 > 0:45:2211am on Oxford Street in London,
0:45:22 > 0:45:25and Christmas is SO last week.
0:45:27 > 0:45:30The whole street has gone totally Black Friday on us,
0:45:30 > 0:45:33and these guys are no exception.
0:45:38 > 0:45:42So imagine my excitement as I head towards near-certain carnage.
0:45:44 > 0:45:47Electricals, brace yourself, I'm going in.
0:45:50 > 0:45:53And after all that, it's...
0:45:53 > 0:45:56Well, it's a busy day in a shop, really.
0:45:58 > 0:46:00It is definitely busier.
0:46:00 > 0:46:03There's a lot of John Lewis staff up here.
0:46:03 > 0:46:05There's so many staff,
0:46:05 > 0:46:07there's almost some spare.
0:46:07 > 0:46:10- Hi, excuse me. I see you've made a Black-Friday purchase.- Yes.
0:46:10 > 0:46:13Did you have to fight anyone to get that? Break any legs?
0:46:13 > 0:46:16- No, luckily I just stood behind the till.- That was it?- Yeah, easy.
0:46:16 > 0:46:20- Were you ready for a fight?- I was. - Yeah?- Yeah, yeah.
0:46:20 > 0:46:22Oh, my gosh, you're giving out sweets.
0:46:22 > 0:46:24Yes, to make the customers happy.
0:46:24 > 0:46:27- Just in case the queues get too big?- Yes.
0:46:27 > 0:46:29How have you noticed the atmosphere in here?
0:46:29 > 0:46:33- Because this is the busiest department.- It's been very calm. Seriously.- It has been calm.- Yes.
0:46:33 > 0:46:37- Even though there are so many people. - But there are a lot of people serving them.
0:46:37 > 0:46:39- So there is a lot of help here. - Yes, yes.
0:46:39 > 0:46:42If any of the partners feel like they've got extra time on their hands,
0:46:42 > 0:46:45they can head up to the staff canteen,
0:46:45 > 0:46:49where someone has set up a sort of market stall to sell iPads to them.
0:46:49 > 0:46:51So the best deal we've got today, this particular item here -
0:46:51 > 0:46:54they're all £30 or £70 off.
0:46:54 > 0:46:56Black Friday price £249.
0:46:56 > 0:46:59Price for partners with discount - £219, you'd pay.
0:46:59 > 0:47:02- That is amazing. So you save £100? - As a partner.
0:47:02 > 0:47:06We're probably going to sell 100 iPads to partners, off the floor
0:47:06 > 0:47:08and not on the floor, if that makes sense.
0:47:10 > 0:47:13While Black Friday might be in full swing in the canteen,
0:47:13 > 0:47:17so far it looks like the rest of Britain isn't playing ball.
0:47:17 > 0:47:21By lunchtime, reports are trickling in from across the country.
0:47:22 > 0:47:25They opened early for business in Norwich,
0:47:25 > 0:47:29but they needn't have bothered - there wasn't a shopper in sight.
0:47:29 > 0:47:31In Cramlington, Northumberland,
0:47:31 > 0:47:35this man should have no trouble getting what he came for.
0:47:35 > 0:47:37- You're the only man here, aren't you?- Yeah.
0:47:37 > 0:47:38HE LAUGHS
0:47:40 > 0:47:43The news story of the day is fast becoming that this year,
0:47:43 > 0:47:46Black-Friday shopping has moved online.
0:47:47 > 0:47:51Amazon is selling a record 86 items per second.
0:47:51 > 0:47:55Ao.com are selling double what they did last year.
0:47:55 > 0:47:58And then for the John Lewis website...
0:47:58 > 0:48:01it all proves too much.
0:48:01 > 0:48:05At just after three o'clock, it goes down for 20 minutes.
0:48:05 > 0:48:07Customers aren't impressed.
0:48:10 > 0:48:14So how's Black Friday playing out in Magna Park?
0:48:14 > 0:48:16Despite the website going down,
0:48:16 > 0:48:18online orders are through the roof.
0:48:18 > 0:48:23They're having to cope with a whopping 18% increase on last year.
0:48:23 > 0:48:25Across the distribution network,
0:48:25 > 0:48:30the 3,000 permanent staff have been boosted by 2,000 temps.
0:48:30 > 0:48:31And as for Andy...
0:48:31 > 0:48:33Hi, guys. You all right?
0:48:33 > 0:48:35HE WHISTLES A TUNE
0:48:35 > 0:48:38- Hi, ladies. How we doing? You all right, yeah?- Yes, yes.
0:48:38 > 0:48:41We're about two thirds of the way through Black Friday now,
0:48:41 > 0:48:44and without tempting fate, we're looking OK at the moment.
0:48:44 > 0:48:46How you getting on? All right?
0:48:46 > 0:48:49- How many deliveries have we had this morning?- Too many to count.
0:48:49 > 0:48:50- That many?- Yeah.
0:48:50 > 0:48:51- Hello.- Hello.
0:48:51 > 0:48:54Clearly all that preparation has paid off.
0:48:55 > 0:48:59By 4pm, with all of the next-day deliveries well on their way
0:48:59 > 0:49:03to being fulfilled, Andy's gone all Oscars acceptance speech on us.
0:49:03 > 0:49:06I stand in front of you today the proudest man on the planet.
0:49:06 > 0:49:10We've had 360-odd days of intricate planning
0:49:10 > 0:49:12to get us into this position today,
0:49:12 > 0:49:14and it's all revolved around the team.
0:49:14 > 0:49:17There's no one individual within Magna Park that can stand above everyone else
0:49:17 > 0:49:21to say they've done anything differently or anything better than anybody else.
0:49:21 > 0:49:23Every single partner, every single agency -
0:49:23 > 0:49:25it's been a phenomenal effort.
0:49:25 > 0:49:27Stunning performance today. Stunning.
0:49:27 > 0:49:30That's all the sexy stuff done, cos I'm going for a cup of tea now.
0:49:33 > 0:49:36It's not over on the shop floor.
0:49:36 > 0:49:39At 5pm in Oxford Street, the price matching goes on.
0:49:39 > 0:49:42Actually, this was one that our customer informed us of.
0:49:42 > 0:49:44So we've got a great deal on one of our coffee machines.
0:49:44 > 0:49:46We put it down to £49,
0:49:46 > 0:49:49another competitor put it down to £29.95.
0:49:49 > 0:49:52So we've quickly reacted, got it now on the system and created a ticket.
0:49:52 > 0:49:55- So a customer alerted you to this? - 65% off.
0:49:55 > 0:49:59- Here we go, Mandy.- Thank you. - Which one is it?- This one here.
0:50:00 > 0:50:04- So from 99.- So that's 99 to 29?- Yep.
0:50:04 > 0:50:06I think it was Argos that put this particular one down.
0:50:06 > 0:50:10So you really are reacting to whoever is competing with you?
0:50:10 > 0:50:12- Absolutely.- Do you expect people now to rush around that
0:50:12 > 0:50:16- like seagulls to a bag of chips? - Yeah. I mean, look, I've literally just put that ticket out...
0:50:16 > 0:50:18And there's already people checking it out.
0:50:18 > 0:50:22We've got customers, one's checking it out, one's already picked up. So fully expect that.
0:50:22 > 0:50:25I'm getting sucked into this whole price slashing thing.
0:50:25 > 0:50:30I badly need some perspective before I buy yet another juicer.
0:50:30 > 0:50:34Gone are the days of schlepping from store to store to compare prices.
0:50:34 > 0:50:37These days, there's a running commentary online.
0:50:37 > 0:50:40In the offices of Money Saving Expert,
0:50:40 > 0:50:42they've been live blogging their analysis
0:50:42 > 0:50:45of which deals are worth going for.
0:50:45 > 0:50:47Is Black Friday really a thing?
0:50:47 > 0:50:51Are there some genuinely great deals to be had, or is it all hype?
0:50:51 > 0:50:54There is a lot of hype, but there are some deals to be had.
0:50:54 > 0:50:5650% off at Gap, which was the biggest of the year.
0:50:56 > 0:50:59M&S have done 30-40% off.
0:50:59 > 0:51:02So there have been some real strong codes and vouchers out there.
0:51:02 > 0:51:04People like Asda have said they're pulling out.
0:51:04 > 0:51:06They've been offering one-litre bottles of Baileys for £10,
0:51:06 > 0:51:08which is a real stonking deal.
0:51:08 > 0:51:11So some retailers are really getting stuck in to Black Friday.
0:51:11 > 0:51:14They are, and online it's been really mega.
0:51:14 > 0:51:16Amazon have been pumping out deals every ten minutes,
0:51:16 > 0:51:19and the same with eBay. The two of them have actually...
0:51:19 > 0:51:21It's not a Black Friday as such - now it's a Black Week.
0:51:21 > 0:51:24How has John Lewis been on their price matching this year?
0:51:24 > 0:51:26We've been impressed by John Lewis this year.
0:51:26 > 0:51:29They have been pumping out a lot of really strong deals in their own right.
0:51:29 > 0:51:32But not only that, they've been really hot on their price matching.
0:51:32 > 0:51:35So even though the prices were good on Amazon, they were matched?
0:51:35 > 0:51:39Yeah, I think that's it. Obviously traditionally people like John Lewis
0:51:39 > 0:51:41wouldn't match an online-only retailer like Amazon,
0:51:41 > 0:51:43but I think everybody was really upping their game today.
0:51:43 > 0:51:47But today's problems with the website haven't gone unnoticed.
0:51:47 > 0:51:50Their servers went down about 3pm, which was really bad.
0:51:50 > 0:51:52Will that have hurt them financially?
0:51:52 > 0:51:55It's not going to be great. And obviously it's a company
0:51:55 > 0:51:58that's built on its reputation as well, so having a website that goes down
0:51:58 > 0:52:02isn't going to do them too many favours. When you think a real kind of established company
0:52:02 > 0:52:05like John Lewis, its servers can't handle a bit of traffic,
0:52:05 > 0:52:07that's not going to look great.
0:52:16 > 0:52:21MUSIC: Driving Home For Christmas by Chris Rea
0:52:21 > 0:52:23It's the morning after the night before
0:52:23 > 0:52:27and, in head office, they're trying to get back into the Christmas mood.
0:52:27 > 0:52:29# Driving home for Christmas... #
0:52:29 > 0:52:33But Peter's still very much in the middle of Black Friday.
0:52:33 > 0:52:37A lot of papers have picked up on the website collapse,
0:52:37 > 0:52:42with speculation that it may have cost them as much as £2.8 million.
0:52:42 > 0:52:45During the course of the day, several retailers were mentioned
0:52:45 > 0:52:49as having sites that just weren't working as well as they should have.
0:52:49 > 0:52:52So Argos was mentioned, Boots was mentioned,
0:52:52 > 0:52:55and we were also in that list. It's... You know, it's not great.
0:52:55 > 0:52:57Because you just don't want to be in that list.
0:52:57 > 0:52:59This will be seen as a year
0:52:59 > 0:53:02when the John Lewis machine wasn't quite 100% perfect.
0:53:02 > 0:53:04CHATTER
0:53:04 > 0:53:07On the 11th floor, it's the weekly sales meeting.
0:53:07 > 0:53:10I know this is a very, very, very important meeting.
0:53:10 > 0:53:12Congratulations to everybody.
0:53:12 > 0:53:15Despite the website crash, it's been the biggest Black Friday yet,
0:53:15 > 0:53:20with total sales of over £187 million for the week.
0:53:20 > 0:53:23Traffic, 18.2 million hits, up 1.2% year-on-year.
0:53:23 > 0:53:27That's obviously a really cracking week for online, so well done.
0:53:27 > 0:53:29That's remarkable.
0:53:29 > 0:53:32The big story was how a drop in footfall in stores
0:53:32 > 0:53:37was more than made up for by a massive increase in online spending.
0:53:37 > 0:53:40Nearly half of John Lewis's sales were made online.
0:53:40 > 0:53:43We had unprecedented price matching activity...
0:53:43 > 0:53:46Although they've had a record week for sales,
0:53:46 > 0:53:50it's not clear how great all that discounting has been for profit.
0:53:50 > 0:53:5340% of all sales were not at full price.
0:53:53 > 0:53:56Now, clearly, that has a margin of great impact.
0:53:56 > 0:54:00Wherever we will price matching, the customers absolutely found it.
0:54:00 > 0:54:03Definitely seen that customers have not quite
0:54:03 > 0:54:06got their heads into the Christmas spirit just yet.
0:54:06 > 0:54:10All this at what should be the most profitable time in the year.
0:54:10 > 0:54:13So we really need to see momentum in shops this week
0:54:13 > 0:54:15for the high-margin Christmas product,
0:54:15 > 0:54:17and that's what it's all about.
0:54:17 > 0:54:20But we go into it in great form, so thank you all very much.
0:54:20 > 0:54:22Good.
0:54:22 > 0:54:24# You'd better watch out
0:54:24 > 0:54:25# You'd better not cry
0:54:25 > 0:54:28# You'd better not pout, I'm telling you why... #
0:54:30 > 0:54:34'December is finally upon us and it's my last trip to Birmingham.'
0:54:35 > 0:54:36# He's making a list... #
0:54:36 > 0:54:38My daughter would love those.
0:54:38 > 0:54:42'I'm surrounded I what I'm guessing are high-margin Christmas products.'
0:54:42 > 0:54:44£8.
0:54:48 > 0:54:51'Along with the kind of shoppers who are ready to splash out
0:54:51 > 0:54:53'on whatever happens to take their fancy.'
0:54:53 > 0:54:55- Do you have a list?- No.
0:54:55 > 0:54:58These are nice kind of non-descript presents, aren't they?
0:54:58 > 0:55:00- Do you have a list? BOTH:- No.
0:55:00 > 0:55:03- Picked up a jam tree. - It just looks nice.
0:55:03 > 0:55:05- A jam tree?!- Exactly.
0:55:05 > 0:55:07It's just jam in a triangle box!
0:55:07 > 0:55:09But it's Christmas, so...
0:55:09 > 0:55:12- At no other time of year would you even look at that.- No.
0:55:12 > 0:55:14Although the Christmas tree itself is drawing me in now,
0:55:14 > 0:55:16cos I want to know what's in it.
0:55:16 > 0:55:20Bucks fizz marmalade, port wine jelly, brandy butter.
0:55:20 > 0:55:22- I think those are more useful.- Yeah.
0:55:22 > 0:55:25'Whether you go for a Christmas tree or a jam tree...'
0:55:25 > 0:55:27That's nice.
0:55:27 > 0:55:29'..it seems people are intent
0:55:29 > 0:55:31'on showing someone they are loved this Christmas.'
0:55:31 > 0:55:34What have you got so far? You've got a big tin of biscuits.
0:55:34 > 0:55:38- Who is that for?- When's this going out?- Just before Christmas.
0:55:38 > 0:55:41- Not telling you, then.- The day before. Oh!- I'm not telling you, then!
0:55:41 > 0:55:43- In case they watch it. - Oh, that's perfect.
0:55:43 > 0:55:46What is your thought process behind these presents?
0:55:46 > 0:55:48That's cos it's a couple, so one each.
0:55:48 > 0:55:50Yeah, there's two mugs and mulled wine.
0:55:50 > 0:55:52I don't know if they want it, but they're having it.
0:55:52 > 0:55:54- But it's gift-y.- Yeah.
0:55:54 > 0:55:57'But, even among the warm glow of goodies,
0:55:57 > 0:56:01'you can't escape the ghosts of a possible Christmas future.'
0:56:01 > 0:56:03Do you ever go in store, have a look what's there
0:56:03 > 0:56:05- and then buy it online a bit cheaper? - All the time.
0:56:05 > 0:56:09So I'll come, have a play, ask a lot of questions
0:56:09 > 0:56:11and then go online to buy it. So I'm not loyal.
0:56:11 > 0:56:13So, for a Christmas retailer,
0:56:13 > 0:56:16you are the vision of the 21st-century shopper.
0:56:16 > 0:56:17Do you ever see a time
0:56:17 > 0:56:20- when you do ALL of your Christmas shopping online?- Yeah, definitely.
0:56:20 > 0:56:22We've done the Amazon list last night.
0:56:22 > 0:56:26- Somebody's got a Christmas list. - A Christmas list? Yes!
0:56:26 > 0:56:28This year, she just put it all on Amazon.
0:56:28 > 0:56:29She didn't even write it out.
0:56:29 > 0:56:31Just sent me the link and I went, "Oh, great."
0:56:31 > 0:56:33- Ding! Press a button.- Christmas.
0:56:33 > 0:56:37# Santa Claus is coming
0:56:37 > 0:56:45# To town. #
0:56:46 > 0:56:50'And, with that, my time with John Lewis is drawing to an end.
0:56:50 > 0:56:53'It looks like it will be a successful Christmas for them
0:56:53 > 0:56:57'but I can't help wondering whether things will always be so rosy.'
0:56:57 > 0:57:00When I was in Birmingham, I met a mother and a daughter,
0:57:00 > 0:57:03and the daughter now doesn't write a list to Santa.
0:57:03 > 0:57:05She writes a list to Amazon,
0:57:05 > 0:57:08sends it to her mother, and the mother just presses "Order".
0:57:08 > 0:57:12How can you compete with something like that, a change in habits?
0:57:12 > 0:57:16- How sad.- Do you accept that or do you resist it?
0:57:16 > 0:57:20I regret it, because some of the mystique, the innocence of childhood
0:57:20 > 0:57:23at Christmas is probably gone in that, but you've got to accept it.
0:57:23 > 0:57:25We are competing with that.
0:57:25 > 0:57:27For us, the magic is the shops and online.
0:57:27 > 0:57:31We are offering that mix of bricks and clicks together.
0:57:31 > 0:57:33So, if you look the last few years,
0:57:33 > 0:57:36our share of the market has increased every year.
0:57:36 > 0:57:38And, although there is still plenty of this year still to go,
0:57:38 > 0:57:41we are on target to do that again.
0:57:41 > 0:57:43Footfall is down, online shopping is up.
0:57:43 > 0:57:46You have so many physical stores
0:57:46 > 0:57:49AND you want your online service to be one of the best,
0:57:49 > 0:57:51- and it's available 24/7.- Yes.
0:57:51 > 0:57:53Surely that's just too much?
0:57:53 > 0:57:57Er, I don't agree. I'm not saying it's easy. Crikey almighty,
0:57:57 > 0:58:00no-one in the changing retail world would say it's easy at the moment.
0:58:00 > 0:58:01Shopping has changed hugely.
0:58:01 > 0:58:04Who even thought, 10 or 15 years ago,
0:58:04 > 0:58:07of johnlewis.com doing nearly half of our trade?
0:58:07 > 0:58:11The job for any retail is to anticipate those changes well.
0:58:11 > 0:58:12That's the excitement.
0:58:12 > 0:58:15MUSIC: Merry Christmas Everyone by Shakin' Stevens
0:58:15 > 0:58:17So there you have it.
0:58:17 > 0:58:18And...
0:58:18 > 0:58:22there's always the excitement of unwrapping a jam tree this Christmas.
0:58:25 > 0:58:27# Snow is falling
0:58:27 > 0:58:30# All around me
0:58:30 > 0:58:32# Children playing
0:58:32 > 0:58:35# Having fun
0:58:35 > 0:58:36# It's the season
0:58:36 > 0:58:39# Love and understanding
0:58:39 > 0:58:43# Merry Christmas, everyone
0:58:44 > 0:58:46# Time for parties
0:58:46 > 0:58:49# And celebrations... #