John Lewis sales boosted by VAT cut

Published on Monday 8 December 2008 08:41

SALES have increased by a fifth at John Lewis in the past week with internet purchases also beating previous records by £500,000.

It is thought the Government's 2.5 per cent VAT cut contributed to the boost which, by close of play on Saturday, had seen a 20 per cent increase on the previous week.

Large purchases such as televisions were particularly strong, along with the store's seven-day curtain-making service.

Nat Wakely, director of selling operations, said: "This week's much stronger sales have borne out our belief that John Lewis's strong and innovative Christmas products, customer service and price matching will ensure our continued position as market leader over the festive period."

But despite the celebration, sales are still down 6.7 per cent on last year, prompting concern over what will happen to profits in the New Year.

Mr Wakely said the next two weeks would prove crucial.

"Compared to the three previous weeks, this week was great," he said. "There has definitely been an increase in the Christmas buzz. The big question is whether this will continue to the other side of Christmas."

Cuts in mortgage rates are also thought to have had an impact on customers' spending in the store.

Weekly figures are not normally released until the following Friday, but they show how the high street is responding to the global economic slowdown.

Pressure on retailers has seen major discounts offered to customers, including up to 20 per cent off in M&S and Debenhams, over the Christmas period.