RETAILER John Lewis saw a surge in sales as shoppers bought household appliances and furniture before last week’s VAT hike.

The company recorded sales of £74.6m across its department stores in the week to January 8 – an increase of nearly 39% against the same week last year.

Shoppers took advantage of the extra bank holiday on January 3, the day before the Government lifted VAT from 17.5% to 20%.

John Lewis also shrugged off the severe weather to post a 7.6% hike in festive sales.