Last update: Fri Oct 24 2008 09:16:36

John Lewis sales down 7.6%

Sales at department store chain John Lewis tumbled 7.6 per cent in the week to October 18 as consumers continue to rein in spending.

The decline follows a drop of 4.8% last week and means sales are running 0.4 per cent lower in the first 12 weeks of the financial half-year.

Seventeen of the company's 27 stores recorded double-digit percentage sales falls, including 19.9 per cent decline at Southampton and 25 per cent at Peterborough.

The chain said it also had to contend with flooding at four branches during the week, at Welwyn, Reading and Brent Cross and Peter Jones in London.

The company's online operation saw growth slow to 5.7 per cent in the week, a sharp deterioration on the rate of 26.1 per cent seen over a wider 12-week period.

The drop on a year earlier to £48.2 million featured a sales decline of 9.6 per cent in electricals and home technology and a 13.5 per cent fall for the group's Home department. Fashion held up well with an improvement of 0.9 per cent.

At supermarket Waitrose, which is also part of the John Lewis Partnership, sales rose by 0.5 per cent in the week as promotional activity continued to exceed expectations.

Selling operations director Dan Knowles said: "The good news is that all areas under our direct control - stock levels, customer service, profit margins and availability - are all performing well.

"We also know that if it's tough for John Lewis, the chances are it's even tougher for everyone else. Our task remains to outperform the wider market, and all indications are that we continue to do so."

© Independent Television News Limited 2009. All rights reserved.

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