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The debate over whether Christmas will be a gift or a letdown to retailers took on a new twist today when latest figures from John Lewis showed “signs of building pre-Christmas trade all around” as it posted a 9.1% rise in year-on-year sales.
The department store chain, often viewed as a barometer of High Street spending, said “seasonal purchasing kicked off strongly in some parts of the country” with London stores flourishing. The tills at Peter Jones rang up 8.4% more sales, at Oxford Street takings were 7% higher and the Bluewater branch raked in 13.5% more than the same time last year.
The retailer admitted that some of the rise was flattered by weak sales in the same period last year but said early indications for Christmas trading were good.
Sister supermarket group Waitrose also flagged up green shoots of recovery for the festive period. “Shoppers are already starting to think ahead to Christmas, with many opting to spread the cost of the festive season,” it said.
Gift sales were up 133% on the week to 24 October last year, and demand for Christmas cake was 28% higher.
Waitrose said the most popular gift choices were toiletries, up 80%, and “the humble mug” which saw sales rocket by 97%.
The latest figures come amidst a flurry of concerns about whether Christmas — which normally gifts retailers a fifth of their annual sales — will be a disappointment or not.
Topshop owner Sir Philip Green said the UK has “one of the most challenging retail landscapes I have ever seen” and warned that rising unemployment meant retailers still have “a long, hard slog ahead”.
But the most recent consumer confidence data showed October levels rose to their highest point since January 2008.
