LIVERPOOL’S Big Dig is being blamed for sluggish annual sales at the city centre branch of department store John Lewis.
More than 600 staff at the Church Street outlet celebrated along with their colleagues across the UK yesterday after finding out they will each get a bonus worth around a fifth of their annual salaries after the group reported a 19% profits rise.
The payout from the partnership, which is co-owned by its employees, is 18% higher than last year and equivalent to more than 10 weeks’ pay.
John Lewis said 2007 pre-tax profits had come in at £379.8m – a rise of £59.7m.
Overall group sales rose 6.3% with department store sales up 5% and Waitrose sales up 3.6%, excluding petrol.
However, the Liverpool city centre John Lewis store saw sales rise just 0.7%, which counts as a fall when inflation is taken into account.
Store manager Margaret Jacques was unavailable for comment but Debbie Taylor, the store’s operations manager (selling), told the Daily Post last night it was likely the huge redevelopment work going on the city centre over the past year had impacted on sales.
She said: “We have seen elsewhere that when there is a large-scale regeneration going on that does have an impact on footfall, but I think the pain is worthwhile.”
In May, the Liverpool John Lewis store and its 665 staff will relocate from the current site in Church Street to new purpose-built premises at Grosvenor’s £1bn Liverpool One development and Ms Taylor added that this changeover could also have impacted on sales. “When the closure of a branch approaches, it is less likely to get the full benefit of any new investment or initiatives. They tend to be saved for when the new store opens,” she said.
The current John Lewis store, which for many years was known as George Henry Lee, will close its doors for the final time on Monday, May 12, and the new outlet will open for business on Thursday, May 15.
Ms Taylor added: “I have been over to see the new store this week and it is already looking fantastic.
“Preparations for the move are going really well and are on schedule.
“We are confident it will give us a real sales lift next year.”
tonymcdonough
