John Lewis launches credit card
Customer demand for credit offer with HSBC
Retail group John Lewis is launching a credit card in partnership with UK high street bank HSBC.
The partnership, which operates John Lewis department stores and the Waitrose supermarket chain, has offered a store card for more than 40 years. However, use of the card by customers has declined since the store began accepting credit cards four years ago.
Customer research suggested there was significant demand for a John Lewis branded credit offer. Interest on the card will be charged at 13 per cent, which the group said was lower than the rate charged by cards currently held by 80 per cent of its 5m regular customers.
Cardholders will also earn reward points worth 1 per cent of any purchase made in one of its department stores or supermarkets, and 0.5 per cent of purchases made elsewhere. Points will be converted into John Lewis vouchers which will be sent to customers every four months.
The card is initially being offered to John Lewis employees – who make up the partners who own the business – and the group’s existing store card holders.
John Lewis also plans to avoid the problems experienced by Marks & Spencer when it began to automatically upgrade customers people from its store card to its new &More credit card.
John Lewis said it is sending customers an application giving them the option of upgrading if they wish. M&S had to switch to an opt-in approach after critcism that it was giving consumers access to credit without their specific consent.
John Lewis has also indicated that is considering expanding into other financial services such as pensions and loans.
