John Lewis Reports Early Christmas Slowdown

Department retailer John Lewis has today warned that it may report poorer results than anticipated over the Christmas period, with sales on marginally up over the early Christmas shopping season compared to much more significant rises last year.

The large independent retailer has announced that sales were uo by less than 2% over the initial Christmas shopping period, compared to growth of 14.4% just the year earlier, suggesting that the company could possibly be in for a much slower Christmas than in previous years.

The announcement comes a day after official government figures suggested that retailers overall could end up feeling the pinch over the course of this festive period as a result of rising mortgage costs and inflation over the last twelve months.

Whilst the company did report an increase in sales overall compared to normal weekly takings, it highlighted that iPods and top end technology products had helped prop up relatively constant sales in what it described as an otherwise ‘quiet’ week of trade.

Despite the initial slowdown, John Lewis are expected to pick up some additional momentum against the downturn in the retail sector in recent months, with the launch of its £6 million Christmas advertising campaign over the last week or so.

Additionally its Christmas strategy for this period is expected to bring in improved sales towards the direct run up to the festival, particularly given its increase in stock availability to meet demand in the closing few weeks of the season.

Meanwhile the company is also mindful of improving sales beyond the Christmas period into the Janurary sales, which have traditionally proved strong, despite the overall slowdown in sales at the company’s 26 stores over the UK.