British department stores group John Lewis scored a 7.2 per cent rise in Christmas sales, as strong demand for items from tablet PCs to coffee machines helped it become one of this year’s likely winners in the UK retail sector.
The improvement comes despite unusually stormy British weather in the run-up to Christmas and a still-cautious approach by many consumers, sparking speculation that many retailers would struggle during the key holiday period.
John Lewis said yesterday sales from online outlets and shops rose to £734 million in the five weeks to December 28, including its biggest-ever taking of £35.6 million on day one of its in-store clearance sale on December 27.
The increase contrasts with rival Debenhams, which kicked off the UK retail reporting period on Tuesday with a profit warning after a hoped-for surge in last-minute Christmas shopping failed to materialise despite heavy discounting.
The finance chief of Debenhams plc quit yesterday after trading updates showed just how far the 200-year-old British retailer had fallen behind rivals John Lewis and House of Fraser over the crucial Christmas period.
John Lewis’s performance is the latest consumer endorsement for the employee-owned group, which has often outperformed competitors in recent years due to its strong online offering, modern stores and more affluent customer base.
The company also captured shoppers’ attention this year with an animated advertising campaign featuring a bear being woken from hibernation by an alarm clock gift, allowing it to appreciate a decorated Christmas tree for the first time.
Group like-for-like sales, which strip out the impact of new stores, rose 6.9 per cent.
Elsewhere a profusion of shop window discount posters in recent days has illustrated retailers’ attempts to attract more customers in a tough market, made harder by a spell of gales and heavy rain which kept many shoppers at home. Research last month by accountants PwC found 72 of 100 town centre retailers were offering discounts or advertising promotions.
A decision by Britain’s biggest clothing retailer Marks & Spencer to slash 30 per cent off all clothing prices in the Christmas build-up has raised fears it too has endured a tough festive period.
Next, Britain’s second-biggest clothing retailer, is due to publish a trading update today (Friday), while M&S is due to report on January 9.
Reflecting Britons’ increasing tendency to shop via their smartphones and tablets, John Lewis said online sales in the five weeks jumped 22.6 per cent on a year ago and accounted for 31.8 per cent of total sales in the period, helped by record online orders on “Black Friday” (November 29), a US-originated promotion day becoming more common in Britain.