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John Lewis breaks its all-time sales record in Black Friday week John Lewis breaks its all-time sales record in Black Friday week
(about 7 hours later)
John Lewis has reported the best week of trading in its 150-year history, fuelled by feverish demand for televisions and tablets on Black Friday. John Lewis has reported the best week of trading in its 150-year history, as feverish demand for televisions and tablet computers turned Black Friday into the busiest shopping day ever for a string of retailers.
The department store offered an early glimpse into how retailers are faring during the crucial Christmas trading season. John Lewis said it had sold an average of one tablet computer every second and a flatscreen 40-inch voice-command TV every minute from the moment 24 hours of promotions began at midnight last Thursday.
John Lewis said it had sold one tablet computer every second and a flatscreen 40-inch voice-command TV every minute on Friday, from the moment the day of promotions began at midnight. The retailer’s internet traffic was up by more than 300% in the early hours of the day, as consumers logged on to snap up discounted clothing, handbags and electrical goods. Overall, online sales were up 42% on last year and staff at John Lewis warehouses had to pack 87% more parcels on Saturday than last year. The retailer’s internet traffic was up by more than 300% in the early hours of Friday as consumers logged on to snap up discounted clothing, handbags and electrical goods.
The tills were also ringing in-store, with branches in London, Liverpool, York and Southampton among those notching up record daily takings. Over the week online sales were up 42% on last year and staff at warehouses had to pack 87% more parcels on Saturday than last year as the group’s website coped well with the rush of orders, avoiding the shutdowns seen elsewhere.
The store revealed it had sold £179m worth of goods in the seven days to 29 November, a rise of 22% on last year, a result described as “spectacular” by industry watchers. This surpassed the previous sales peak of £164.4m which was set during the week before Christmas last year. The tills were also ringing in stores with branches in London, Liverpool, York and Southampton among those notching up record daily takings.
Consumers were splashing out on electrical goods, with sales up 41% on last year. But clothing was also popular, up 17% on last year, as were pricey handbags, up 37%. The store revealed it had sold £179m worth of goods in the seven days to 29 November, a rise of 22% on the same week last year – a result described as “spectacular” by industry watchers. It also surpassed the previous sales peak of £164.4m in the week before last Christmas.
Consumers were splashing out on electrical goods, with sales up 41% on last year. Clothing was also popular, up 17% on last year, as were pricey handbags, up 37%.
“The year-on-year gain was all the more impressive given that John Lewis had also taken Black Friday very seriously in 2013,” said Howard Archer, chief UK economist at IHS Global Insight.“The year-on-year gain was all the more impressive given that John Lewis had also taken Black Friday very seriously in 2013,” said Howard Archer, chief UK economist at IHS Global Insight.
The results do not cover Cyber Monday, another industry-defined day to encourage consumers to part with their cash just after payday. Analysts think Black Friday has eclipsed Cyber Monday, with shoppers spending £850m on the Friday, compared to an expected take of £650m on Monday. According to online retail experts IMRG, the number of visits to shopping websites hit 181m on Friday, 50% above expectations. Online electricals retailer AO.com said it had its busiest trading weekend in its 14-year history, while Maplin Electronics also said its online sales on the day had been up 70% compared with last year and store sales up more than 30%. Halfords, the bikes to car parts chain, said its website had 1.1m visitors on Black Friday, double the number last year, while online retailer Very.co.uk said its sales were up 134% on last year making it the busiest day in its history.
John Lewis was not offering discounted goods on Cyber Monday, although many retailers continued their promotions over the weekend into Monday. Jon Owen, retail brands and trading director at Very’s parent company Shop Direct, said: “If Black Friday came of age last year, it was turbo-charged this year. We were blown away by its success.”
Amid the decline in the manufacturing sector, the UK has become increasingly dependent on consumer spending, which accounts for two-thirds of economic activity. Archer said that the fundamentals for consumer spending this Christmas were decent, citing high consumer confidence, high employment and low inflation. But Dino Rocos, John Lewis operations director, said the week before Christmas could still surpass last week as shoppers online and in stores were likely to leave gift buying to the last minute this year.
“With Christmas on a Thursday there could be a late rush,” said Rocos. “Last year a lot of individuals began their holiday on the weekend before Christmas Day and that translated into strong sales,” he said.
Rocos said that the busiest shopping day of the year for John Lewis could fall at any point in the week before Christmas. For the high street in general, Boxing Day, when John Lewis does not trade, has recently been the biggest shopping day of the year as Britons flocked to the sales. But this year that could change as shoppers begin looking for bargains online on Christmas Day, and are more prepared to leave their shopping to the few days before Christmas in the hope of getting bargains online or in stores.
Rocos said shopper habits were changing rapidly, with Black Friday on the rise while the following Monday, previously the biggest online shopping day of the year, was “not really a number at all.”
John Lewis was not offering discounted goods on so-called Cyber Monday, unlike some other chains. Amazon also admitted the day had been outgunned by Black Friday for the first time. It would not reveal the number of items ordered on Monday but said it was more than the 4.1m booked last year and less than the 5.5m achieved on Black Friday. British shoppers spent £810m online on the Friday, compared to an expected take of £650m on Monday. According to online retail experts IMRG, the number of visits to shopping websites hit 181m on Friday, 50% more than predicted.
The British economy has become increasingly dependent on consumer spending, which accounts for two-thirds of economic activity. Archer said high consumer confidence, high employment and low inflation meant retailers could be in line to enjoy solid Christmas spending.