// John Lewis under fire for charging third-party brands “ridiculous” fees to stock their products
// Brands currently pay John Lewis up to 50% of every sale in commissions and fees
// Lifestyle retailer Seasalt has cut ties with John Lewis saying it would push its offering in Marks & Spencer and Next instead
John Lewis is reportedly facing backlash from third-party brands who have accused the department store chain of claiming “ridiculous” fees to stock their products.
The retailer’s chairwoman Sharon White has enlisted Alix Partners to renegotiate supplier contracts, under which brands pay John Lewis up to 50 per cent of every sale in commissions and fees.
Seasalt has since decided to cut ties with John Lewis saying it would push its offering in Marks & Spencer and Next instead, while two other unnamed brands had negotiated for discounts, The Times reported.
READ MORE: John Lewis hires advisers to help “deepen” supplier relationships
In March the employee-owned parent John Lewis Partnership said it was not planning to reopen eight of its 42 John Lewis shops from lockdown, adding to eight closures last year.
The moves to hike fees comes following a top-level shakeup at the retailer.
In May, there were a host of new senior appointments — including bringing in a “store of the future” director.
John Lewis appointed Stephen Spencer, currently director real estate, store development and strategic sales at athleisure brand Lululemon, as director of store of the future.
This came alongside plans to invest £50 million in johnlewis.com this year as shoppers continue to buy online.
“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,” John Lewis said.
“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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