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Sales at John Lewis, the department store group and high street bellwether, plunged by 14 per cent last week, in one of the retailer's worst trading periods in recent history.
The John Lewis Partnership also revealed today that sales at Waitrose, its upmarket supermarket chain, also suffered significantly, with trade tumbling by 4.6 per cent - the group's worst result for the year to date.
Today's figures will cast further doubt on the reliability of data published yesterday by the Office for National Statistics (ONS) which revealed retail sales fell by 0.1 per cent in October, far below the 0.9 per cent decline forecast by leading economists.
John Lewis is considered a leading indicator of high street sentiment and although today's figures are for the week to November 15, and the ONS statistics reflected trade in October, the department store also reported dire revenues last month.
Towards the end of October, sales at John Lewis fell by 9.8 per cent, its worst performance this year until today's figures emerged. Earlier this week, the British Retail Consortium (BRC), said that the total value of retail sales in the UK fell for the first time in three years.
The BRC sales monitor for October showed that like-for-like sales were down 2.2 per cent and total sales fell 0.1 per cent, marking the first annual drop since April 2005.
Yesterday, Marks & Spencer held a one-day "20 per cent off" sale in a bid to boost pre-Christmas sales, joining other retailers such as Debenhams who are battling to lure cash-strapped consumers through their doors.
Howard Archer, chief UK and European economist at IHS Global Insight said: "Retailers will be desperately hoping that the recent slashing of interest rates from 4.5 per cent to 3 per cent by the Bank of England, the prospect of another large interest rate cut in December and the apparent imminent announcement of tax cuts by the Government will give a significant boost to sales over the vital Christmas shopping period."
But he added: "Nevertheless, we suspect that retailers still face a very difficult Christmas period, and life looks likely to remain tough for some considerable time thereafter."
In a defiant statement, Barry Matheson, head of selling development at John Lewis, said the stores were well presented and stocked, but said: "...we are not immune from the reality of the economic crisis that grasps every headline, and that is reflected in last week's result."
At Waitrose, sales of alcohol were strong last week, in particular, whiskey, cider and speciality lager while trade in meat was also buoyant.
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MPs stopped shopping there?
cfh, Lugo, Spain
I went to a local Tesco yesterday morning and it looked pretty full to me
Chris, Birmingham,
Just out of curiosity, how did stores such as ALDI, Lidl, TESCO, Wm Morrison's fared? It seems that focussing on John Lewis and Waitrose might not reveal the overall picture, as other stores have gained customers that are not willing to pay more for the same items. A complete analysis is needed.
Alex, Loughborough, UK
Hah. Lies,damn lies and statistics (massaged by ministers) !!
k rogers, bury st edmunds,
Peter Jones has played for the good times.....low stock..high end..ignorant staff..expensive asscessories...how those MBA colleges churned that management out! Well its over....back to basics if you know anyone who knows what that is.....I know! Employ some Indian MBA's brought up in Mombai!
Stephen Morris, London, UK
i've always found their electricals home delivery service to be very reliable. Lets hope sales improve so my brother can keep his job.
john, watford, england
To S Brant - the JL tv will include a 5 yr parts and labour guarentee - add in the price the other stores will charge you for that then see who's cheapest. But yes, maybe the down market stores will do better, the tills in the local Primark are red hot.
Alan Lucas, Bromley, Kent
John Lewis have tried to attract a younger shopper, but the good solid middle-aged and middle class feel left out with that range of goods. We are the ones with the money though
Pam, Nottingham,
They can't release the "real" dreadful figures, it will become self fulfilling!
smlaing, bucks, uk
Why, are MPs now shopping in Harrods?
mnairb, Hove, U.K.
John Lewis seeing a 14% decline seems about right although indicates they are doing relatively badly. Based on loss of spending from mortgage equity withdrawal alone, you'd expect to see retail spending just 5% down in absolute terms. ONS figures are very questionable.
Michael, West Midlands,
If any tax cuts come my way, it will be staying in my pocket as much as possible. The whole spend now save later mantra is what got us here in the first place and having been prudent so far have no intention of following the words of any cash rich ministers or other vested interests.
spencer, london, uk
If John Lewis is suffering, it's not because people don't want to shop there- we went last saturday and had to wait 40mins for a parking space! The place was crawling with people, but the checkouts were hard to find and a lot of their goods were cheaper on the high street. Nice towels though...
Ruth, slough,
John Lewis/Waitrose - Bellwether - its laughable. If you see a TV for £1200 in JL I'm sure you could get it for about £900 either online or in other well known high st electrical stores. Along with M&S they have positioned themselves at the wrong end of the market for a downturn
S Brant, Purley, UK
ONS = brOwNS figures.
john rigby, kenilworth, england
We just have to question the ONS figures yet again.
They must have errors in the seasonal adjustment stats or, are they being influenced by ministers wanting to put a better slant on the real state of the economy?
A.M. Williams, Stafford,