UK Retailer John Lewis Comp Sales Flat Over Holiday Season

U.K. department store chain John Lewis Monday reported flat comparable sales over the holiday season as consumers slashed spending on home-related goods amid falling property prices, and cautioned the next few months will be extremely tough.

Home sales fell 6% over the five weeks to Jan. 3 from the same period a year earlier. On a brighter note, Fashion sales, including beauty rose 4% amid steep discounting, whilst Electricals and Home Technology sales increased by 10%.

Total sales, excluding value added tax, rose 2.4% over the five week period from a year earlier.

"I am really encouraged by this performance over the key Christmas and early Clearance period," said Andy Street, managing director of the employee-owned chain. "It is especially pleasing that our Home assortment has begun to see stronger trade in the last week," he added.

"Whilst we expect the next few months to be extremely tough, we are confident that our continuing focus on inspiring products, great value and differentiated service leaves John Lewis well positioned to meet customer needs in this challenging time," Street said in a statement.

There are 27 John Lewis department stores around the country, which trade under the same name as its parent, John Lewis Partnership PLC. The group also operates 198 up-market supermarket stores under the Waitrose brand.

For the week to Dec. 27, Waitrose sales rose sharply to GBP111.3 million from GBP79.2 million a year earlier as consumers treated family and friends around the holidays. Waitrose hasn't published sales figures for the five week period to Jan. 3.

The John Lewis Partnership will publish its full-year results on March 11.

John Lewis' rivals, Debenhams PLC (DEB.LN), Next PLC (NEXT.LN) and Marks & Spencer Group PLC (MKS.LN) are expected to report disappointing holiday sales in the next two days. Marks & Spencer is also widely expected to issue another profit warning on Wednesday, according to analysts.

Company Web site: www.johnlewis.com

-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com

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