John Lewis manages to defy hard times

Feb 23 2008 by Alex Turner, Liverpool Daily Post

LIVERPOOL’S John Lewis store’s performance was a rare highlight in a week of national trading described by the retailer as “one of the toughest in living memory”.

Nationally its like-for-like sales for the week to February 16 were down 3.4% as the group took £45.57m, a fall of £1.62m on last year. The department chain blamed the combination of the half-term holidays and sunny weather for the disappointing performance.

However sales in the first three weeks of the partnership’s financial year remain 1.4% higher than a year earlier.

John Lewis had previously delivered some of the most upbeat figures on the high street during a difficult Christmas period. Its poor trading hit the share prices of fellow retailers Next and Marks & Spencer as both fell nearly 5% in yesterday’s trading.

Dan Knowles, a regional director of selling operations at John Lewis, said: “Trade last week was one of the toughest in recent memory, and we will be disappointed to finish the week down on last year.

“There is no doubt that the glorious weather most of the country has been experiencing has played a big part, and many parents over half term have been taking advantage of the sun to enjoy the outdoors rather than go shopping.” Mr Knowles said the Liverpool store beat its budget “handsomely” despite a 0.8% fall in like-for-like sales. Sales of men’s casual wear was particularly strong in its Basnett Street store.

The group, which has 26 stores and an online division, is due to report annual results next month, having seen pre-tax profits jump 50% to £146m in the six months to July 28.

This week the partnership’s Liverpool managing director Margaret Jacques was given the keys to its store in the Liverpool One development, which will open on May 29.

The 240,000 sq ft, four-storey outlet is 40% bigger than its existing site and will require 150 more staff.

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