Angela Jameson
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John Lewis, the department store group that is a key benchmark of high street performance, has seen a slight recovery in its sales for the second week running, after a poor performance in May and June.
The employee-owned company's 26 department stores saw a 0.4 per cent increase in year-on-year sales to £49.97 million in the week to 19 July, the last week of its clearance sale. The performance represents a second consecutive week of growth in sales. In the previous nine weeks, sales had fallen eight times.
The positive outcome was driven by a 5.7 per cent increase in fashion sales. Sales in the electricals, home technology and home categories fell 0.6 per cent and 4.7 per cent respectively.
Sales through the retailer's website were also a third higher than the same week last year, helped by a 50 per cent increase in visitors to the site.
Edinburgh was the busiest department store with Oxford Street not far behind.
“Selling through clearance lines was still our major focus, but it was encouraging to see the extra transitional stock that we’ve sourced hitting the mark," Patrick Lewis, director of retail operations, said in a memo to staff.
Mr Lewis noted that in electricals, imaging products sold well as customers prepared for summer holidays.
However, sales of kitchen appliances were quieter, although forward orders are ahead on fitted kitchens.
Excluding new stores in Cambridge and Liverpool, five department stores and the online operation JohnLewis.com delivered positive sales. Out-of-town stores again performed poorly, reflecting the impact of higher fuel costs on consumers.
Bluewater was down 14 per cent, Cribbs Causeway down 13.1 per cent and Brent Cross down 9.7 per cent.
Many UK retailers are struggling as shoppers cut back on spending because of higher fuel, food and mortgage costs. So-called "big ticket" retailers — which sell furniture, big appliances, carpets, bathrooms and kitchens — are suffering more than most, with fewer people moving home and house prices falling.
Earlier this week, the Office for National Statistics said UK retail sales in June fell by 3.9 per cent, the sharpest monthly decline since records began in 1986.
Waitrose, the upmarket food retailer owned by John Lewis, continued to help the group to a positive result with sales in the week to July 19 up 1.4 per cent to £74.7 million. Total partnership sales were up 1 per cent to £124.6 million.
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