John Lewis has bucked the high street downturn with a 20% surge in sales during the first week of its summer clearance, boosted by a mini heatwave and strong demand for fashion and electricals. The department store chain recorded sales growth of 20% (18.2% excluding VAT) in the week to 25 June compared with the same period last year.
Peter Ruis, buying and brand director, attributed the strong performance to the decision to start the sale online on Wednesday evening and in shops on Thursday. “It has clearly paid dividends, with us trading up 14% compared to the first four days of clearance last year,” he said. Fashion sales climbed 22.6%, led by childrenswear (up 42%) and accessories and beauty (up 22%). Electricals were 17.6% ahead, driven by a 58% jump in IT sales, while homewares advanced 20.5%.
Freddie George, retail analyst at Seymour Pierce, described the figures as “outstanding”, noting that the retailer benefited from two extra sale days and easier comparatives with the previous year, when the World Cup and hot weather depressed sales. “These figures will provide some relief to a sector that has been significantly impacted by the economic headwinds,” he said. All John Lewis stores were in positive territory, with standout performances at Brent Cross (up 15%), Southampton (up 18%) and Kingston (up 11%). Online sales rose 46%, with fashion soaring 80%.
However, George sounded a note of caution, suggesting that consumers may have brought forward spending to take advantage of discounts, and that retailers have focused on preserving margins rather than offering deep cuts. Howard Archer, chief UK and European economist at IHS Global Insight, echoed this view, stating: “It is highly likely that once the clearance sale is over, or the best of the bargains are gone, consumers will quickly put their hands back in their pockets.” Debenhams also reported strong beauty sales, which it attributed to the “lipstick effect” of consumers treating themselves during tough times.
