Business | Economy
Week of collapses deters UK shoppers
Shoppers' confidence was battered last week by the collapse of Woolworths and MFI, according to John Lewis, which reported a 13 per cent drop in sales in the week to Saturday against the same period last year.
- By Sarah O'Connor, Financial Times
- Published: 00:41 December 2, 2008
London: Shoppers' confidence was battered last week by the collapse of Woolworths and MFI, according to John Lewis, which reported a 13 per cent drop in sales in the week to Saturday against the same period last year.
"Confidence was relatively low already, and there's no doubt Woolies hit it again," said Patrick Lewis, head of retail operations at the department store chain. John Lewis has watched trade deteriorate in recent months as the economy worsens.
However, sales picked up on Friday and Saturday, helped by the company's decision to pass on the government's 2.5 percentage point cut in value added tax.
Crucial weeks
Although sharply below last year's levels, sales rose 10 per cent on the previous week as Christmas shoppers began slowly to appear.
The company has been forced to make large discounts in recent weeks in line with its panicking rivals. Last week House of Fraser offered up to 25 per cent off selected lines.
"It's not an easy policy to implement," Lewis admitted.
"A lot of our competitors think we're crazy, but we think it's worth it."
Lewis said the next few weeks of trading would be crucial for retailers.
Share this article
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
