John Lewis's 'remarkable week' brings hope to the retail recovery

The employee-owned group said it saw a "remarkable" week of trading over the Easter holiday, with all of its 27 stores open more than a year recording sales growth.

John Lewis notched up takings of 59m, which was also 21 per cent higher than the equivalent Easter period in 2009, reflecting strong growth across all major departments.

The group's Sheffield store saw sales increase by 25.2 per cent on a year ago. Cumulatively this year, the store's sales are 9.4 per cent ahead of a year ago.

The group's sales cheer follows Wednesday's better-than-expected fourth quarter trading figures from Marks & Spencer.

M&S said fourth quarter sales surged 5.1 per cent in the 13 weeks to March 27.

Jill Little, John Lewis merchandise director, described last week's figures as a "remarkable result". She said: "This week we will continue to see the impact of Easter on sales and better weather should drive sales of new season fashions and outdoor living.

"We now have news of the General Election, but it remains to be seen whether this will have an impact on consumer confidence.

" We can be confident, however, that we are well positioned to continue our impressive sales performance, as our shops look excellent and our assortment is market beating."

John Lewis sales in the week to last Saturday were boosted by a 24 per cent rise in its home offering. Fashion had a "phenomenal" week with a 22 per cent increase, while electronics and home entertainment were up 19 per cent.

Tea sets and cake plates were in demand thanks to a recent marketing campaign, while in fashion, the poor weather drove better-than-expected sales of coats and jumpers.

Its best performing stores were at the Bluewater and Trafford shopping centres, where sales rose 46.3 per cent and 45.4 per cent respectively. Shoppers also flocked to its website, sending sales at johnlewis.com up by 57.1 per cent.

The partnership's Waitrose supermarket arm also enjoyed buoyant trading last week, with the 'Delia effect' sending sales of food in its advertising campaign featuring chefs Delia Smith and Heston Blumenthal soaring.

Grape sales surged by 330 per cent and chicken by 65 per cent thanks to Delia's recommended roast chicken dish with grapes and tarragon.

The supermarket chain bagged a 34.4 per cent increase in total sales during the week, to 109m – up 12.8 per cent when compared with Easter week in 2009.

Economist Howard Archer of IHS Global Insight said the group's figures give hope for consumer spending in 2010.

"Even allowing for the Easter impact, the John Lewis sales figures are hugely impressive and it would be nice to think the consumer is really coming to life and set to give the UK economy a decent boost," he said.

But he added John Lewis is outperforming the market, and the results probably reflect an element of consumer escapism amid the tough economic climate.

"However, we suspect that it is more the case that after enduring an extended tough period, consumers are particularly keen to enjoy holiday periods and times like Easter," he said.

"Given a series of recent improved data and survey evidence, it does appear that the UK recovery may be becoming a little more firmly established.

"Nevertheless, we continue to suspect that the upside for consumer spending – and hence overall economic growth – will be limited in 2010 as households still face challenging conditions."

Cadbury cafes to hit the high street

Cadbury-branded cafes are to open on Britain's high streets under plans confirmed by the Dairy Milk and Wispa maker.

The group has secured backing from new owner Kraft for a chain of Cadbury outlets offering afternoon tea and an on-site chocolatier service making large versions of popular bars such as Curly Wurlys and Flakes.

As many as 60 outlets could be opened over the next three to five years under the proposals. US parent Kraft, which bought Cadbury in a controversial 11.5bn takeover in February, has thrown its weight behind the idea, endorsing a 20-year licence deal with a group of retail entrepreneurs to lead the venture.

Cadbury had been in discussions with the team and signed the licence agreement in January, before Kraft completed its acquisition.

The US firm has now given the plans the green light, but is not providing financial backing.

Cadbury said it was an "exciting concept that builds on the success of the Cadbury brand", although a spokesman stressed it was "very early days" for the venture.

It is thought the cafes could be called Cadbury Cocoa Houses – the same name that was given to a previous Cadbury-branded cafe, which was operated in Bath.