Uh oh. The numbers out of John Lewis keep getting worse — despite the store’s famous claim that it has never knowingly been undersold.
With competitors across the country furiously discounting ahead of Christmas, it too has been slashing prices by up to 25 per cent on hundreds of branded products. Not that you could tell from these numbers:
Week to Nov 22 17 wks to Nov 22
Dept stores -13.3 pct -3.9 pct
Food group -3.9 pct 0.4 pct
Total sales -8.6 pct -1.4 pct
What’s more the numbers follow sharp year-on-year declines in the previous nine weeks. Howard Archer, chief UK & European economist at IHS Global Insight, further draws attention to the fact that the weakness is now widespread across all its product sectors and geographical location.
Breaking down the sales some interesting trends are appearing.
Sales improved in fashion due to the group’s price-cutting response. Home and electrical trade remains “challenging”, specifically in higher valued items. Most interestingly, the group’s standout performers were haberdashery and fashion fabrics. These saw a 14 per cent uplift on last year, suggesting “customers have been inspired to be creative” according to John Lewis. ‘Biscuit the dog‘ meanwhile is the gift most awaited by children this year, with corresponding record product sales.
According to Howard Archer all this means UK consumers can expect a lot more discounting, special promotions and flash sales right up to Christmas. See for instance, the Bleak Black Friday sales today.
FT Alphaville meanwhile worries what ‘creatively inspired’ spending in the haberdashery department could mean for Christmas. Beware the large loopy scarf and jumper revival.
Related links:
Tips to avoid knitting disasters – Craft Stylish
Sewing World Magazine
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