John Lewis sees AI agent shopping surge 733% as retailer invests in content to capture AI search

UK's John Lewis looks to harness AI agent shopping in 'difficult economy'

LONDON, Sept 3 (Reuters) - John Lewis, Britain's largest employee-owned retailer, is stepping up investment in content creation as customers increasingly find products through AI agents, seeking to keep them engaged in what it called a "difficult economy". The department store group said searches from AI agents had risen to 2.5% from just 0.3% a year ago, and the trend was accelerating. "It's exponential, and it's all age ⁠groups," said Peter Ruis, managing director of John Lewis department stores. The group unveiled a new studio in its flagship Oxford Street store on Thursday where influencers can record content daily, generating the online buzz that AI taps into. It is also producing its own video content, starting with a regular mini-series starring celebrities. The retailer gave no financial details of its investments. Ruis said British shoppers were being "very careful" about discretionary spend as they worry about inflation and higher interest rates. Asked about summer trading, he said while the economy was ⁠difficult, there had been bright spots such as booming sales of air conditioning units and garden furniture during successive heatwaves. British economic data over the summer showed surprising signs of strength, but economists have warned over the country's vulnerability to high inflation stemming from the Iran war. "It isn't an economy where ⁠you're going to splurge when you know you've got that inflation swirling around you," he told reporters. The retailer will report half-year results on September 10. In August, the Financial Times said John Lewis had ⁠warned employees that the department store chain was facing "really tough" trading conditions. Ruis said a lot of "key customers" in their 40s and 50s were worried about interest rates rising ⁠and whether their children at school and university would be able to get jobs in future. Ruis is due to step down on September 6 and be replaced by Will Kernan, currently a non-executive board member. Reporting by Sarah Young, Editing by Paul Sandle Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Sarah Young Thomson Reuters Sarah reports on UK breaking news, with a focus on British companies. She has been a part of the UK bureau for 12 years covering everything from airlines to energy to the royals, politics and sport. She is a keen open water swimmer.

John Lewis to launch YouTube chatshow to improve AI search results

Department store chain's Gift List 'vodcast' will be hosted by TV presenter Angela Scanlon John Lewis is launching an online chatshow and social media studio to help make itself and its products more visible to chatbots and more prominent in AI search results. The department store chain's Gift List "vodcast" hosted by TV presenter Angela Scanlon will air on YouTube with clips disseminated via other social media channels and comes after the success of its sister chain Waitrose's Dish podcast. The premise is guests discussing good and bad presents they have given and received, with broadcaster Louis Theroux appearing on the first show. There will be six episodes running up to Christmas, with more planned if the series takes off. Shoppers are increasingly influenced by the likes of ChatGPT and Gemini to find and recommend products and also by information on social media, such as Instagram and TikTok. The AI large language models tend to prioritise third-party advice and live content when formulating their responses, which is forcing retailers to change their marketing plans. The department store's outgoing boss, Peter Ruis, said that a year ago just 0.3% of its customers were searching for products via AI large language models such as ChatGPT, but that had already risen to 2.5%, and usage was growing exponentially with all ages using the technology. Being able to rapidly respond to trends and interests with clips of influencers or experts filmed for social media - such as the opening of the British Museum's Bayeux tapestry exhibition which is expected to spur an interest in cross stitching, or the launch of the Harry Potter TV series before Christmas - has become just as important as the group's festive TV ad or its 'never knowingly undersold' price pledge. Ruis, who departs John Lewis this weekend after almost three years as managing director, said John Lewis had to move with the times as it faced an economy which was "a bit swirly". He said the chancellor's budget announcements next month would come at a "critical period" for retailers and he wanted to see more help on business rates. Ruis said strong trading this week and a string of recent innovations, including modernised cafes and sports departments as well as the social media push and a recent "toy boom", made him optimistic about the run-up to Christmas. Details of John Lewis's half-year figures will be released next week. Ruis said it had been a "summer of winners and losers" but indicated there was now "decent momentum" as shoppers still had money to spend. The chain rang up record sales of garden furniture, fans and air conditioning over the summer but Ruis said it was not yet clear if the "Burnham bounce" over the summer would last. "People are not going to splurge when you have got inflation swirling," he said. "It's not an easy economy. It's not easy for customers and inflation is kicking in and the fuel pump is costing people a lot of money." Ruis last month announced his abrupt departure, saying he was going to "pursue new projects". He gave no further clue on his future plans on Thursday but said there was "no misalignment" on strategy with John Lewis's relatively new chair, Jason Tarry. "We are getting things done at pace," Ruis said, adding there was "never a good time" to leave but it was "far better to leave a winning team at the top of its game and all that excitement with events next year to unveil, rather than finishing bottom of the league and running out of the door". Ruis insisted his departure did not indicate that he had lost hope in the future of John Lewis, saying it was not a traditional department store reliant on fashion and beauty like Harvey Nichols, which was bought out of administration by Sports Direct founder Mike Ashley's Frasers Group last month. He said John Lewis sold a third of all UK prams and pushchairs, garden furniture and the latest technology and "this is not stuff Harvey Nichols can sell".

UK's John Lewis looks to harness AI agent shopping in 'difficult economy'

* Searches from AI agents rise to 2.5% from 0.3% a year ago * John Lewis opens Oxford Street studio for influencers to record content daily * Retailer reports half-year results on September 10 LONDON, Sept 3 (Reuters) - John Lewis, Britain's largest employee-owned retailer, is stepping up investment in content creation as customers increasingly find products through AI agents, seeking to keep them engaged in what it called a "difficult economy". The department store group said searches from AI agents had risen to 2.5% from just 0.3% a year ago, and the trend was accelerating. "It's exponential, and it's all age groups," said Peter Ruis, managing director of John Lewis department stores. The group unveiled a new studio in its flagship Oxford Street store on Thursday where influencers can record content daily, generating the online buzz that AI taps into. It is also producing its own video content, starting with a regular mini-series starring celebrities. The retailer gave no financial details of its investments. Ruis said British shoppers were being "very careful" about discretionary spend as they worry about inflation and higher interest rates. Asked about summer trading, he said while the economy was difficult, there had been bright spots such as booming sales of air conditioning units and garden furniture during successive heatwaves. British economic data over the summer showed surprising signs of strength, but economists have warned over the country's vulnerability to high inflation stemming from the Iran war. "It isn't an economy where you're going to splurge when you know you've got that inflation swirling around you," he told reporters. The retailer will report half-year results on September 10. In August, the Financial Times said John Lewis had warned employees that the department store chain was facing "really tough" trading conditions. Ruis said a lot of "key customers" in their 40s and 50s were worried about interest rates rising and whether their children at school and university would be able to get jobs in future. Ruis is due to step down on September 6 and be replaced by Will Kernan, currently a non-executive board member. (Reporting by Sarah Young, Editing by Paul Sandle)