Commercial Property News

John Lewis Partnership, the employee-owned group seen as a barometer of retail spending, said today its 27 department stores recorded their best performance of the first-half so far.

The group said sales at its department stores increased 2.2% to £46.5 million  in the week to June 20.

"Our best week of the half so far. We were up on five of the seven days, and the week finished with a brisk Saturday, with Father's Day purchasing clearly in evidence," said the retailer.

Fashion sales increased 10.0%, while sales of electricals and home technology were up 3.7%. But sales in the home category fell 5.7%, handicapped by muted housing market activity.

John Lewis said it was set for "a strong clearance" (sale).

"At face value, the latest John Lewis department stores data look encouraging, particularly as they are seen as a good bellwether for the state of consumer spending," said Howard Archer, chief UK and European economist at IHS Global Insight.

"However, it is important not to read too much into the data as they were clearly lifted significantly by purchases for Father's Day."

Earlier this week British electrical retailers DSG International and Kesa Electricals both reported slumps in profit and gloomy outlook statements.

John Lewis said weekly sales at its chain of 213 Waitrose supermarkets increased 11.8% to £86.6 million.

It said Waitrose's sales figures support the view that there are signs shoppers have started to revert to pre-recession behaviour.