John Lewis reports "cracking" sales

The employee-owned group said on Friday sales at its 28 department stores, one John Lewis at home store, and internet business, increased 15.6 per cent to 50m in the week to January 30 against the same week last year.

Managing Director Andy Street said the outcome was driven by a 16.6 per cent increase in fashion sales, a 15.7 per cent rise in homewares sales and a 14.4 per cent increase in the electricals and home technology category.

"This completed a cracking January and an impressive second half year," leaving the firm "admirably placed for the new trading year," he said.

The John Lewis data was published two days after a survey from the Nationwide Building Society said British consumer confidence rose in January but households showed less desire to spend than normal for the start of the year.

"Despite the robust John Lewis performance, the suspicion remains that the upside for consumer spending -- and hence overall economic growth -- will be limited in 2010 as households face still very challenging conditions, notably including high unemployment, low earnings growth, high debt levels, January's VAT hike and the prospect of further fiscal tightening," said Howard Archer, chief economist at IHS Global Insight.

John Lewis also owns the 222-store Waitrose supermarket chain.

Waitrose sales increased 15.7 per cent to 89.7m, reinforcing its position as the UK's fastest growing grocer.

"At the start of the trading year we were in the midst of a recession and many predicted that the economic climate would be particularly challenging for us," said Waitrose Managing Director Mark Price.

"However we have ended the year by being the fastest growing food retail business in the UK, overtaking Marks & Spencer food sales for the first time in our history."