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John Lewis weekly sales drop to lowest level in nearly two years John Lewis weekly sales drop to lowest level in nearly two years
(4 months later)
John Lewis, viewed as the bellwether of the high street, has seen weekly sales drop to their lowest level in nearly two years – raising concerns that its rapid growth could be slowing.John Lewis, viewed as the bellwether of the high street, has seen weekly sales drop to their lowest level in nearly two years – raising concerns that its rapid growth could be slowing.
Only £59.8m went through the retailer's tills in the week to 8 June, falling below the £60m-a-week mark for the first time since September 2011. Sales were more than 5% down on the same week last year.Only £59.8m went through the retailer's tills in the week to 8 June, falling below the £60m-a-week mark for the first time since September 2011. Sales were more than 5% down on the same week last year.
This was despite the group opening seven new stores and seeing continued record growth in its internet operation – one of the biggest online success stories for a high street retailer.This was despite the group opening seven new stores and seeing continued record growth in its internet operation – one of the biggest online success stories for a high street retailer.
Andrew Murphy, retail director for the department store chain, described the downturn as a "blip", but admitted it was a sign that the record growth for the company was coming to an end.Andrew Murphy, retail director for the department store chain, described the downturn as a "blip", but admitted it was a sign that the record growth for the company was coming to an end.
He said: "The growth that we showed in the last seven months last year was at a level that was unsustainable and no business is going to sustain that in the long term.He said: "The growth that we showed in the last seven months last year was at a level that was unsustainable and no business is going to sustain that in the long term.
"At the moment we have got four shops that are not ahead of their comparative sales from last year, so we would still consider that to be a good position.""At the moment we have got four shops that are not ahead of their comparative sales from last year, so we would still consider that to be a good position."
The four stores are Peter Jones in Chelsea, Brent Cross, Stratford and Watford.The four stores are Peter Jones in Chelsea, Brent Cross, Stratford and Watford.
He added that several key events last year made comparisons difficult, including the diamond jubilee, Olympic and Paralympic Games, and the digital TV switchover in London.He added that several key events last year made comparisons difficult, including the diamond jubilee, Olympic and Paralympic Games, and the digital TV switchover in London.
"The jubilee was three times bigger commercially for us than the royal wedding the year before," he said."The jubilee was three times bigger commercially for us than the royal wedding the year before," he said.
Sales of electricals were dented by £1.2m as TV sales fell as a result of last year's digital switchover – when the analogue signal was switched off across London and shoppers upgraded their televisions.Sales of electricals were dented by £1.2m as TV sales fell as a result of last year's digital switchover – when the analogue signal was switched off across London and shoppers upgraded their televisions.
Sales had been expected to fall in the week to 8 June, compared with a year earlier, because in 2012 there was an extra bank holiday, a later half term and gloomy weather, which all encouraged shoppers into stores.Sales had been expected to fall in the week to 8 June, compared with a year earlier, because in 2012 there was an extra bank holiday, a later half term and gloomy weather, which all encouraged shoppers into stores.
With warm weather finally hitting large swaths of the UK in the first week of June, customers also stayed clear of the high street to enjoy the sunshine, the company said.With warm weather finally hitting large swaths of the UK in the first week of June, customers also stayed clear of the high street to enjoy the sunshine, the company said.
Peter Ruis, buying and brand director, said: "Customers really responded to our most weather-dependent ranges with strong results in outdoor living, up 26%, barbecues up 23% and picnicware up 17%."Peter Ruis, buying and brand director, said: "Customers really responded to our most weather-dependent ranges with strong results in outdoor living, up 26%, barbecues up 23% and picnicware up 17%."
However, electricals suffered a 4.6% fall and home fell 8.9% on last year's levels as a result of the high sales of jubilee merchandise in 2012.However, electricals suffered a 4.6% fall and home fell 8.9% on last year's levels as a result of the high sales of jubilee merchandise in 2012.
The retail analyst Nick Bubb agreed that the department store's impressive recent growth could be coming to an end.The retail analyst Nick Bubb agreed that the department store's impressive recent growth could be coming to an end.
He said: "This is probably just a blip for John Lewis, but they aren't singing and dancing quite as much as they were a few months ago. All in all it's getting a bit harder for them and the strong growth appears to be slowing."He said: "This is probably just a blip for John Lewis, but they aren't singing and dancing quite as much as they were a few months ago. All in all it's getting a bit harder for them and the strong growth appears to be slowing."
The John Lewis Partnership, which also includes Waitrose, achieved record profits last year, up 15.8% to £409m, giving employees, or partners, a 17% bonus.The John Lewis Partnership, which also includes Waitrose, achieved record profits last year, up 15.8% to £409m, giving employees, or partners, a 17% bonus.
Online sales for johnlewis.com soared 40% last year with sales topping £1bn for the first time in the site's history – a year ahead of schedule.Online sales for johnlewis.com soared 40% last year with sales topping £1bn for the first time in the site's history – a year ahead of schedule.
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