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John Lewis gears up for second half

Published: 5 August 2011
Department store chain reports a slowdown in sales over past week but feels it is still in "good shape" as it heads into H2.
As the weather improved and temperatures rose last week, John Lewis' sales slackened to finish 1.2% up on the same seven-day period last year. The increase was behind the strike rate John Lewis has enjoyed over the past few weeks and means the retailer ended the first half of the year with a more modest performance than anticipated.

However, managing director Andy Street was far from disappointed. "In challenging trading conditions, we can be well pleased with the half year's sales finishing 2.6% ahead of a strong first half in 2010. We believe we have outperformed competitors across electrical, home and fashion, and most definitely online."

Home was down 1.2% for the week ended July 30 and saw an increase of just 0.6% in H1 overall. However, Mr Street feels it was the "star of the season", with linen, textiles, home accessories, gifts, beds and cookshop all doing well and growing market share.

Electrical and home technology also performed well last week, up 3.2% on the same period last year, and up more than 9% for the first half.

However, the stand-out result was online, with johnlewis.com reporting a 27% surge in sales in H1. Mr Street explained it was a team effort: "Shops and distribution have played a magnificent part, with Click & Collect' up a massive 87% last year. And the work done within online selling, merchandising, and IT to drive the performance of our website has been formidable."

He continued: "We go into the all-important second half in very good shape... Our June and July results have been relatively strong, and should provide just the momentum and confidence we need to outperform our competitors when it matters most. That's the mission for the coming months."

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