John Lewis News Update: Sales Slump
John Lewis News Update: records all time low in sales, over the past two years. John Lewis currently unsure just how much they will be able to bounce back.
One of our most loved and domineering high street retailers John Lewis helpline has recently reported its unfortunate slump in sales recordings for this year. The past two years John Lewis has actually recorded its lowest sales levels on history, with their now fears for its future growth.
Updates For John Lewis
‘Only £59.8m went through the retailer’s tills in the week to 8 June, falling below the £60m-a-week mark for the first time since September 2011. Sales were more than 5% down on the same week last year.
This was despite the group opening seven new stores and seeing continued record growth in its internet operation – one of the biggest online success stories for a high street retailer.
Andrew Murphy, retail director for the department store chain, described the downturn as a “blip”, but admitted it was a sign that the record growth for the company was coming to an end.
He said: “The growth that we showed in the last seven months last year was at a level that was unsustainable and no business is going to sustain that in the long term.
“At the moment we have got four shops that are not ahead of their comparative sales from last year, so we would still consider that to be a good position.”
He added that several key events last year made comparisons difficult, including the diamond jubilee, Olympic and Paralympic Games, and the digital TV switchover in London.
“The jubilee was three times bigger commercially for us than the royal wedding the year before,” he said.
Sales of electricals were dented by £1.2m as TV sales fell as a result of last year’s digital switchover – when the analogue signal was switched off across London and shoppers upgraded their televisions.
Sales had been expected to fall in the week to 8 June, compared with a year earlier, because in 2012 there was an extra bank holiday, a later half term and gloomy weather, which all encouraged shoppers into stores.
With warm weather finally hitting large swaths of the UK in the first week of June, customers also stayed clear of the high street to enjoy the sunshine, the company said.
Peter Ruis, buying and brand director, said: “Customers really responded to our most weather-dependent ranges with strong results in outdoor living, up 26%, barbecues up 23% and picnicware up 17%.”
However, electricals suffered a 4.6% fall and home fell 8.9% on last year’s levels as a result of the high sales of jubilee merchandise in 2012.
The retail analyst Nick Bubb agreed that the department store’s impressive recent growth could be coming to an end.
He said: “This is probably just a blip for John Lewis, but they aren’t singing and dancing quite as much as they were a few months ago. All in all it’s getting a bit harder for them and the strong growth appears to be slowing.”
As you can see it is not only the smaller chain shops which are suffering the consequences of the recession, but also the large players in the retail world such as John Lewis. It will be interesting to see the extent to which John Lewis recover, or whether this a sign of a constant sales struggle to come. For more information on services at John Lewis please visit their website.
Original article extract found at http://www.guardian.co.uk
4,027 total views, 4 views today