Defying widespread predictions of a retail slump, two of Britain's most prominent chains, John Lewis and Primark, have posted unexpectedly robust sales figures. This positive performance stands in stark contrast to the broader narrative of consumer caution gripping the sector.
The John Lewis Partnership, which encompasses both John Lewis department stores and Waitrose supermarkets, reported a notable 4% increase in sales at John Lewis for the week leading up to 24th May. This surge was significantly bolstered by a spectacular week for its fashion and beauty departments, which saw an impressive 8% jump. Even Waitrose held its ground with a marginal 0.2% sales increase.
This buoyant news from the employee-owned partnership arrives just a day after Associated British Foods, the parent company of Primark, delivered a stellar trading update. The fast-fashion giant reported a 7% like-for-like sales increase, crediting its success to new store openings and a particularly strong performance in the UK.
A Broader Sector in the Doldrums
However, this spark of optimism is set against a much bleaker backdrop for the wider industry. The latest data from the British Retail Consortium (BRC) paints a concerning picture. According to their figures, overall UK retail sales growth remained stagnant at 0% in May year-on-year, a figure that falls well below the three-month average.
Helen Dickinson, Chief Executive of the BRC, did not mince words, describing the month's sales as "dismal". She pointed the finger squarely at the wet weather of May, which dampened spending on clothing, DIY, and gardening supplies. More profoundly, she highlighted the ongoing cost-of-living squeeze as the primary culprit, forcing many households to prioritise essential spending and cut back on non-essentials.
A Tale of Two Retail Realities
This creates a curious dichotomy within the UK retail landscape. On one hand, giants like John Lewis and Primark are demonstrating that strong brand appeal, compelling product offerings, and value propositions can still unlock consumer wallets.
On the other hand, the BRC's data suggests that for many other retailers, the environment remains exceptionally challenging. The combination of unseasonable weather and persistent financial pressures on households is creating a significant headwind that is hard to overcome.
This split in fortunes suggests that the current retail environment is increasingly winner-takes-all, with consumers being highly selective about where they spend their diminished disposable income. The performance of these two retail behemoths offers a crucial case study in resilience during economically turbulent times.
