Cheer for John Lewis as shoppers still spending

The group reported a 15.5 per cent increase in last week's sales after four successive weeks of single digit sales increases.

But analysts warned that sales will toughen significantly in October.

"In light of forthcoming VAT increases, concerns about public spending cuts and worries about the housing market, we believe spending is likely to be subdued over the next quarter," said Seymour Pierce analyst Freddie George.

The firm's online sales were 33 per cent ahead of last year.

Chris Hooper, John Lewis' head of operational support, described it as a "record week for click and collect". He added that the Sheffield John Lewis saw sales increase by 9.8 per cent.

The company's electrical division saw a sales growth of 8.4 per cent on last year, with the recently introduced Apple iPads selling well along with other IT equipment.

Despite mixed weather conditions, outdoor living continues to trade well, with hamper sales at over 100 per cent showing that people's desire to get out in the open remains strong.

John Lewis also owns Waitrose, which has branches in Harrogate, Otley, Sheffield and Hull, and is to open new stores in York and Leeds this autumn.

The 231-store supermarket chain's sales rose 10.3 per cent ahead of last year to 89.6m.