DEPARTMENT store chain John Lewis today reported a surge in sales as shoppers rushed to buy household appliances and furniture ahead of last week’s VAT hike.
The company recorded sales of £74.6 million across its department stores in the week to January 8 - an increase of nearly 39% compared to the same week last year.
John Lewis said consumers took advantage of the extra bank holiday on January 3, the day before the Government raised VAT from 17.5% to 20%.
The results come as a flurry of retailers report mixed trading over Christmas and New Year. Last week, John Lewis showed it had shrugged off the severe weather as it posted a 7.6% hike in festive sales.
Maggie Porteous, head of selling operations for John Lewis at home, said the year-on-year percentage increase was the best so far in the financial year to the end of January.
She said: "Although we traded the same number of days as last year we benefited from an additional bank holiday. That, coupled with the imminent rise in VAT, drove footfall on Sunday and Monday, with the latter day seeing a phenomenal increase of 68%."
The company said its store in High Wycombe, Buckinghamshire, was the strongest performer, with stores in Trafford in Manchester and Cheadle in Staffordshire not far behind.
The company’s website johnlewis.com saw sales increase 42% in the week, driven again by white goods, such as fridges, microwaves and washing machines.
The wider Partnership also reported the same week figures for its Waitrose supermarket arm, which despite the bank holiday and a spike in sales last year, were up 2.9% at £95.02 million.
Rupert Thomas, marketing director at Waitrose, said customers’ shopping habits were reminiscent of spring months.
He said flower sales were up 44% and plant sales were up 61%. In food, seafood stood out with an increase of 40% compared to a year earlier.
Howard Archer, chief UK and European economist for IHS Global Insight, said: "The very strong jump in John Lewis sales indicates that consumers were very keen to take advantage of genuine bargains in the clearance sale.
"Consumers in general face serious headwinds and uncertainties, so see the sales as a time to make purchases that they could increasingly struggle to make in 2011."
