John Lewis sees World Cup boost

The employee-owned firm, which is seen as a bellwether of the UK retail sector, said sales at its 28 department stores increased 20.6 per cent to 54m in the week to June 5.

"As World Cup fever reached a crescendo of anticipation, customers splashed out on new flat-screen TVs," the firm said, adding that World Cup stock had also sold very well in sports and childrenswear.

John Lewis' performance contrasts with that of Home Retail, Britain's No.1 household goods retailer, which on Thursday posted a bigger than expected drop in quarterly sales at its Argos stores, partially blamed on a loss of market share in TVs.

Retailers are emerging from a deep recession but fear steps, such as higher taxes, to rein in a record government deficit will hit consumer spending in the months ahead.

"The football World Cup always tends to have some upward impact on retail sales and this is liable to be magnified the better that England do," said Howard Archer, chief economist at IHS Global Insight.

"Further out, it is hard to be optimistic about the prospects for consumer spending. Indeed, we believe that consumer spending will be limited for some time to come."

John Lewis also owns the 228-store Waitrose supermarket chain where week to June 5 sales rose 6.1 per cent to 94.4m, confirming its status as one of the UK's fastest growing grocers.