John Lewis reports best-ever week

John Lewis reported its best-ever sales performance last week, beating equivalent periods last year and in 2007 and providing further comfort to retailers in the peak festive trading season. John Lewis said it had generated sales of £110m

in the week to Saturday December 12, up 15 per cent on the year earlier period, when Britain was in the full throes of the financial crisis.

It is also more than 8 per cent up on the retailer’s biggest week in 2007.

Andrew Murphy, director of operational development and customer services, said the performance showed that “we are on decent form and that there must be some strengthening of consumer confidence”.

The figures will add to increasing expectations among retailers that this Christmas will be no worse than 2008, when many store groups were forced to slash prices as the economy lurched downwards, and could even be better.

Mr Murphy said sales were strong in fashion, where the group has bolstered its offering, introducing a number of new designers and revamping shopping areas.

The New West End Company, which represents retailers in Bond Street, Oxford Street and Regent Street, said sales in London’s West End were up 10.6 per cent in November. Sales in December so far are up 10 per cent on 2008, and also ahead of December 2007, a record month.

While Christmas trading figures so far appear to be encouraging, retailers remain cautious about the outlook for next year, when they face the increase in VAT, other tax increases and public sector cuts.

“We still think next year is going to be a difficult one,” said Mr Murphy. “Customers have kept a bit in hand as they have gone through 2009. As always Christmas brings it out.”

Image: John Lewis