Online sales boost Next and JLP
Published: 04 January, 2012
Next and John Lewis both saw a surge in online sales in the run-up to Christmas against subdued in-store sales
In a trading update for the five weeks to 31 December 2011, John Lewis said total sales were up 9.3 per cent compared with last year. Like-for-like sales were up 6.2 per cent. And the star performer was JLP's online operation which saw 27.9 per cent year-on-year growth.
Sales were up in the week preceding Christmas, but down in the week after Christmas, reflecting the rush a year previously to buy big-ticket items ahead of the VAT increase.
Managing director Andy Sreet said: “The strength of our online operation was very much in evidence during this key five week period, confirming our strength as a pre-eminent multi-channel retailer. Sales at johnlewis.com broke through the £600m milestone during December and our Click and Collect operation, giving customers the flexibility of buying online and collecting from 129 John Lewis and Waitrose branches, continued operating right up to Christmas Eve in John Lewis and saw a 90 per cent increase in usage.”
At the same time Next has revealed overall sales up 3.1 per cent in the period 1 August to 24 December 2011.But once again it was online that outperformed, with the Next Directory generating a sales uplift of 16.9 per cent against a 2.7 per cent decline in in-store sales.
The company said November and December sales were disappointing and it is hard to judge to what extent warm winter weather and higher levels of competitor discounting masked the deeper, longer lasting, economic effects.
Despite the tough trading climate and the migration of sales online, Next said it remained committed to opening profitable new space where it achieves excellent returns on capital invested.
