John Lewis sales up 20% compared to same period in 2008

Date: 27 November 2009, Author: Steven Jackson

John Lewis's sales are up 20 per cent this week so far, compared with the same period last year, as retailers’ optimism about the festive season rises.

Sales of the store chain’s own-brand cashmere were particularly strong, with jumpers up 70 per cent on last year. The department store, which is seen as a barometer of the British high street, said that sales of its Cheeky Monkey Bean Chair were up 27 per cent. Christmas cushions are also proving popular, as are digital photo frames, which are up 80 per cent on last week, and camcorders, which are up 30 per cent.

Andrew Murphy, Director of Operational Development, said: “If sustained through the weekend, this will represent the strongest year-on-year comparison we have seen in 2009. “These figures reflect some really heavy customer spending on technology products and home ranges over the last four days, as gift-buying moves into top gear and preparing the home for a traditional family Christmas becomes a priority.”

Last week, sales by the department store chain were up 14.9 per cent on the previous year, boosted by fashion, particularly menswear.

Howard Archer, an analyst for IHS Global Insight, said: "It does appear that the consumer is perking up for Christmas. Very low mortgage interest payments and moderate inflation are boosting the purchasing power of a good many people, thereby giving them scope to step up their discretionary spending."

However, he added: "It must be borne in mind that the year-on-year comparisons in John Lewis sales are now being slanted markedly upwards by the particularly weak performances a year ago ... In fact, John Lewis's sales in the week to 21 November were marginally down (by 0.3%) from the corresponding week in 2007."

Waitrose, John Lewis’s sister business, saw sales rise by 17.6 per cent last week, with mince pies leading the way as Christmas shopping hots up. The food-shop chain said that it had launched a new, more old-fashioned style of mince pie that had proved very popular, with overall mince pie sales up 32 per cent.

The retail sector looks set for a robust festive trading season, based on figures released so far. Yesterday the CBI said that sales for the past three months had grown at their fastest pace in two years.

Business sentiment about the retailing sector is also now positive for the first time since August 2007, according to the CBI’s monthly distributive trading survey.

Source: Times Online