Angela Jameson and Steve Hawkes
Win 100 iconic DVDs
Evidence that shoppers are deserting the high street continued today as John Lewis said that sales in its department stores had fallen by the biggest amount for three years.
Sales plunged 8.3 per cent, the seventh time in eight weeks that John Lewis, one of the star performers on the high street, has reported a fall. Sales fell by 12 per cent in the week after the London tube bombings in 2005.
Even the first day of John Lewis's sale, or clearance event, could not improve last week's figures at the end of what managers have called a challenging seven days.
Sales across the company's 26 department stores are closely watched as a barometer of middle-class spending. However, in the week to 28 June, sales dropped 8.3 per cent to £53 million.
The economic health of the John Lewis Partnership, the employee-owned group, appears to be in the hands of its food arm Waitrose, where sales at the group’s chain of 189 supermarkets increased 3 per cent to £77.1 million. Total Partnership sales, adding department stores and Waitrose together, fell 1.9 per cent to £130.1 million compared with a 7.4 per cent increase seen this time last year.
Bluewater was the worst performing department store, with sales down 24.6 per cent in the week, while sales at Southampton and Peterborough fell by 22 per cent and 21.5 per cent respectively.
The shortfall was driven by a 15.8 per cent slump in sales of electrical and home technology products and a 13 per cent fall in the home category. Fashion sales were, however, up 2.2 per cent.
Excluding new stores at Liverpool and Cambridge only two branches London’s Oxford Street and Knight & Lee and the online operation johnlewis.com were in positive territory. Eighteen branches saw double digit sales declines and of these four saw declines of over 20 per cent.
Phil Hullah, commercial director at John Lewis, said: "Taking a full week's perspective, there is no doubt that trade in our shops proved challenging when compared to exceptional results last year. Overall, Scotland and the north of England fared best, while our out-of-town shops faced the most difficult conditions."
He also blamed "glorious weather across the country and a compelling sporting calender" for a poorer start to the Clearance sale than had been seen last year. "Last year's first day (an all-time record) was always going to be difficult to assail, but not only did the division deliver a huge sterling result, we also recorded more than 20 per cent growth versus our opening day two years ago," Mr Hullah said in an update to staff.
One bright spot was the performance of John Lewis Direct, the company's internet business. The internet sales channel saw its busiest Saturday since launch last weekend, with a 20 per cent year-on-year increase in sales, indicating that even at sales time shoppers prefer to bag bargains from the comfort of their own home.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive salary + NHS pens
The Council for Healthcare Regulatory Excellence (CHRE)
London
Not Specified
The Sheppard Trust
London
£31,842 – £38,378pa
Charity Commision
London, Liverpool or Taunton
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.