John Lewis downbeat on Christmas
Consumer confidence dented by interest rate rise
December 20 2003
The John Lewis Partnership has sounded a cautious note on its Christmas prospects after sales dipped at its department stores.
In the week to December 13, department store sales fell by 0.5 per cent, compared to a 0.3 per cent fall the week before. The group’s Waitrose supermarket chain saw growth of 4.2 per cent in the week to December 13, compared to 4.9 per cent a week earlier.
Across the past 13 weeks, group sales are up 4.7 per cent, with department store sales up 0.4 pct and Waitrose up 8.7 per cent. A John Lewis statement said: “There has to be some caution about Christmas and New Year sales, based on the sharp drop in consumer confidence in November.”
The retailer was more optimistic about sales in the early part of 2004. It said:”We continue to expect UK consumer spending to be supported in the near term by relatively low interest rates, a strong labour market, increasing wealth through moderately rising house prices and more household borrowing.”
John Lewis also revealed that its flagship Oxford Street branch in London saw sales slump 25 per cent on December 8, when the England World Cup-winning rugby team paraded through London, passing the store.
