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John Lewis stores see their profits plummet
Simon English, City Correspondent14.11.08
ANY last hopes of a bright Christmas on the high street were washed away today when John Lewis admitted that even its stores are struggling.
The group is regarded as a bell-wether of the high street which means that if it is finding it hard to cope then rivals are probably faring even worse.
In the week to 8 November, sales were down 9.7 per cent on a year ago to £58 million, the eighth weekly decline in a row. Even the flagship store in Oxford Street could not escape, with sales tumbling 9.1 per cent.
Peter Jones in Sloane Square saw sales down 18.6 per cent, a fall blamed on bankers in the "bonus belt" suddenly slashing their outgoings. Nat Wakely, John Lewis's director of retail operations, said it had been "a difficult week", adding that the combination of "economic uncertainty and grim weather" was behind the fall.
Retailers hope that recent cuts in interest rates will spark a revival of consumer confidence as shoppers have more cash due to lower mortgages.
Sales at Waitrose - also part of John Lewis - were up 0.6 per cent but that is much worse than Asda and Sainsbury's which recorded a jump in sales this week as shoppers hunted for cheaper food options.
Reader views (6)
As any hope of after sales service from John Lewis has disappeared, I am not surprised their profits are down.A washing machine bought with a two year warranty breaks down after 18 months but is still not repaired after 4 weeks- but it is nothing to do with John Lewis.The fact that this was highlighted as a plus at the point of sale by the shop assistant is irrelevant.We could have bought the machine cheaper in several discount outlets but chose John Lewis for its customer service. So now that they have joined the don't care brigade, profits will inevitably plummett.Less than a week before Christmas a young mother with her two babies both of whom are sick at the moment but John Lewis have no responsibility for the quality of the product they provided and which has been out of action for four weeks and they don't want to know.
Why pay top price at John Lewis? For what?
- Helen Lant, London UK
I've read the story twice now, and can only see news of John Lewis' sales being down, so where the headline of "profits plummet" comes from I really can't tell.
You do know trhe difference?
Dhanraj. What's your point?
- Md, London, UK
scrap the london cc charge in the run up to christmas.
- Malcolm, chingford
When John Lewis's and Waitrose feel the pinch you can begin to imagine what the less privileged folk must be going through
- John, Leighton Buzzard, Beds
John Lewis is not a 'real' Cooperative.
- Dhanraj, Basildon Essex
Still, they can always rely on MP's and their "John Lewis" expenses list can't they?
- Al East, Reading UK
