John Lewis has announced the return of its famed “never knowingly undersold” price-match pledge, reinstated two years after being shelved as part of a strategy to reclaim its customer base.

This significant reversal comes from Peter Ruis, the executive director of the department store chain, who has committed to match prices in all 34 stores and online against 25 competitors, including major retailers like Amazon, Next, and Marks & Spencer.

The decision follows the company’s intention to refocus on retail investments after a tumultuous period marked by three successive years of financial losses and a controversial diversification into housebuilding.

Dame Sharon White, the former chairwoman, discontinued the price-match assurance in 2022—after nearly a century of operation—citing high costs and a diminishing relevance in a marketplace increasingly dominated by online competitors.

Ruis noted he began working on the revival of the “never knowingly undersold” initiative shortly after rejoining the firm. He emphasized that the previous discontinuation had eroded customer confidence in the value offered by John Lewis. Recent tests with 7,000 customers indicated that 63% were more likely to shop at John Lewis because of the reinstated pledge.

This development arrives amidst a challenging time for John Lewis Partnership, which also operates Waitrose. The company has faced decreased sales and market share losses exacerbated by the pandemic and the ongoing cost of living crisis. Customers have expressed concerns that the brand has lost its competitive edge, alongside reports of declining customer service linked to job cuts and store closures.

When asked if discontinuing the price guarantee was an error, Ruis expressed a focus on future improvements, stating, “We had a price mechanism that had to change. It wasn’t fit for purpose when it was dropped…We now have a price mechanism that’s fit for the future.”

Originally introduced in 1925, the slogan commits the store to refund customers if they find the same item at a lower price elsewhere within a 28-day timeframe. Under the updated scheme launching on Monday, customers can receive a refund within seven days of finding a cheaper price from one of the specified 25 retailers.

Previously, the price matching was broader but faced challenges amid aggressive discounting from rivals like Debenhams. Competitors included under the new scheme will be House of Fraser, AO.com, Currys, Boots, Flannels, Fenwick, Harvey Nichols, and Selfridges, with Amazon being matched only on technology items.

Ruis expressed confidence that reintroducing this pledge would not result in profit margin issues, describing the new process as “much easier to operate.”

John Lewis plans to utilize artificial intelligence tools from Quick Lizard to monitor thousands of online products, addressing previous technology gaps that hindered their ability to do so.

Regarding whether the substantial investment in the price-match scheme would limit store improvements, Ruis assured, “I have plenty of money to invest. This is only going to drive more growth, more excitement, and more consideration.”

New chairman Jason Tarry, set to join the team this month, has shown strong support for the revival initiative. He will succeed White, who completes her five-year term in February.

Charlotte Lock, the partnership’s customer director, shared that the announcement of the initiative brought emotional reactions among employees, describing a moment filled with “a few tears in the room.”