Five John Lewis stores saw sales fall by more than 20 per cent last week, despite promotions designed to match heavy price cutting by competitors.

The retailer’s weekly trading update revealed a 23 per cent drop at Nottingham, while stores at Peterborough, Reading, Bristol’s Cribbs Causeway and Peter Jones in London also saw sales fall by more than a fifth on a year earlier.

Total sales for the week to last Saturday feel by 13 per cent, during a period when rivals Marks & Spencer and Debenhams held cut prices by at least 20 per cent in a bid to drive footfall in the run up to Christmas.

Jill Little, merchandise director at the chain, said that John Lewis had held its own, particularly in fashion after matching the price cuts on branded lines.

With just 27 shopping days to go until Christmas, Ms Little said: “A week of high profile competitor reductions give an indication that most retailers are finding themselves in tough times. Throughout this, we can remain confident in the honest pricing strategy we have always delivered for our customers."

The group’s fashion department provided the best performance in the week, with sales down by 7.7 per cent on a year earlier. Electricals and home technology dropped 13.2 per cent and Home revenues slumped by 19.6 per cent.

One of the week’s best sellers was Biscuit the Dog, a life size electronic toy retriever puppy which John Lewis said had sold in record numbers.

John Lewis customers also appeared to be resorting to a home-made Christmas with sales of haberdashery and fashion fabrics rising by 14 per cent.

The department store is one of a handful of retailers that have rushed to pass on the Chancellor's 2.5 per centage point VAT cut, before the deadline of 1 December.

At supermarket chain Waitrose, which is also part of the John Lewis Partnership, sales were down for a second consecutive week - off 3.9 per cent.

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