Bellwether British retailer John Lewis posted another big rise in weekly sales at its department stores, adding to recent positive signs on consumer spending despite fears over a sluggish economic recovery.
The employee-owned group said today sales at its 28 department stores, one John Lewis "at home" store and its Internet business rose 15.1 per cent year-on-year in the week ended February 20th to £51.8 million (€58.9 million)
It was the sixth straight double-digit percentage increase and comes amid signs spending in Britain has bounced back from a snow-disrupted start to the year.
The Confederation of British Industry reported yesterday that retail sales volumes rose at their fastest pace in nearly three years in February, while GfK NOP said earlier today its consumer confidence index improved for a second month in a row.
Against this, however, Nationwide building society reported a 1 per cent fall in British house prices in February, ending a run of nine consecutive monthly increase.
Analysts remain wary about prospects for spending amid fears that steps to cut government borrowing after the upcoming national election could hit consumer confidence.
Analyst Matthew McEachran at brokerage Singer also noted that, despite its reputation as a barometer of retail spending, John Lewis was not representative as it has been outperforming rivals, helped by a strong performance in its fashion and internet businesses.
John Lewis said fashion sales jumped 20.8 per cent in the week ended February 20th, while online sales were up a third. Sales of homewares rose 19.4 per cent.
Sales at John Lewis's upmarket grocery chain, Waitrose, rose 13.7 per cent to £86.7 million (€98.4 million), reaffirming its position as Britain's fastest-growing food retailer.
Reuters