John Lewis sales up despite signs of belt tightening

John Lewis's Glasgow store was one of only three of the group's 29 outlets to post higher sales last week as economists warned that consumer spending was continuing to tighten after bank holiday-induced splurges in April and May.

The employee-owned chain posted an overall 0.5 per cent year-on-year rise in turnover during the week to 4 June, with Glasgow up 0.3 per cent. Edinburgh's sales slipped by 0.5 per cent while Aberdeen tumbled 8 per cent.

Howard Archer, chief UK and European economist at IHS Global Insight, warned: "Despite the marginal headline increase in sales in the latest week's trading, the John Lewis figures do little to dilute the serious concerns over the health of the UK consumer - particularly as John Lewis has consistently out-performed the retail sector in recent times.

"The signs point to consumers generally becoming more circumspect in spending again after splashing out a bit in April due to the later Easter, royal wedding and good weather.

"The fact is that many consumers are unwilling - or unable - to spend heavily."

Freddie George, a retail analyst at Seymour Pierce, added: "We are also concerned that the department store's 'sales' are being brought forward because of weak sales and this will ultimately have an impact on margins."