The impact of the excessively hot weather on high street trading was laid bare as one of the retail industry’s biggest names presented starkly contrasting results for its two operations.
John Lewis Partnership said the protracted heat wave, which has seen the mercury soar above 30C in many parts of the UK, has kept shoppers out of its department stores.
It also blamed the first Ashes Test in cricket in Nottingham and Andy Murray’s Wimbledon triumph for an 8.7 per cent year-on-year drop in sales in the week to 13 July.
With most of Scotland basking in high temperatures, there were some big falls recorded at the firm’s three Scottish outlets. Glasgow plummeted 19 per cent, Aberdeen was down by 14.9 per cent and there was an 11.6 per cent slump in takings in Edinburgh.
Conversely, last week’s very hot weather proved to be positive news for the group’s supermarket arm Waitrose. It saw sales soar 14 per cent as shoppers stocked up on food, drink and barbecue products for eating outdoors.
City analysts said the differing fortunes highlighted the mixed effect the hot weather was having on the retail industry.
Retail commentator Nick Bubb said: “The heatwave may well be boosting the fortunes of Waitrose and other supermarkets, but it is becoming fairly disastrous for out-of-town centres and retail parks and it is interesting that even online sales at John Lewis were hit last week.”
The figures showed that sales at Johnlewis.com were up by just 3.2 per cent on the previous year.
In the first 24 weeks of the firms’ financial year, the rise at the online operation was a healthier 17.3 per cent, while the gain across the group was 6.7 per cent.
Bubb said that with the “unhelpfully hot weather persisting”, John Lewis’ sales could take a further knock this week.
IHS Global Insight’s chief European & UK economist, Howard Archer described the weekly sales drop as “pretty hefty”, saying it was “highly likely” that as individuals spent more on food and drink, discretionary expenditure took a hit.
He noted: “The John Lewis/Waitrose sales highlight the mixed impact that the fine weather is having on retail sales.
“There are certainly some positives for consumer spending and it is encouraging that consumer confidence was up to a 25-month high in June.
“However, consumers remain under pressure on a number of fronts which could constrain the upside for consumer spending in the near term at least.”
Official data released last week signaled a tentative recovery in the retail industry with sales increasing for a second month in June.
John Lewis has overtaken the wider market for some time now but traditionally fares better in poorer weather when consumers are focused on indoor pursuits.
A spokesman for the group said: “The beautiful weather is set to continue, offering our customers many temptations outside. We will therefore need to work hard to tempt customers online or in to store, and once there to wow them with our fabulous products and knowledgeable service.”
Why do you think sales at John Lewis have fallen during the heatwave while other retailers have reported increased activity at the till?
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