Sales at freshly rebranded John Lewis & Partners dropped for the second week in a row amid growing evidence of a slowdown in UK consumer spending.
Britain’s largest department store chain reported on Tuesday that total sales in the week to 17 November had fallen 6.8% year-on-year, following from an 8.3% plunge the week before.
READ: John Lewis profits plunge 99% as tough competition squeezes margins
The numbers will look particularly grim given the 99% decline in first-half profits reported in September, after price-matching put the company’s gross margins under pressure in what chairman Charlie Mayfield called the “most promotional market we’ve seen in a decade”.
Black Friday and Elton John to the rescue?
In a statement, the company said mild weather had impacted sales at the start of the week but had picked up “significantly” toward the end as a result of the start of the Black Friday sales period and the release of its much-anticipated Christmas advert starring Elton John.
It’s here! This year’s Christmas ad, as launched by our Partners, featuring the wonderful @EltonOfficial ???????? #EltonJohnLewis ???? pic.twitter.com/x2ZxO4ghDy
— John Lewis & Partners (@jlandpartners) November 15, 2018
The bleak figures followed data last week that showed UK retail sales had risen at their slowest pace in six months in October, with large supermarkets such as Tesco PLC (LON:TSCO) and Sainsbury PLC (LON:SBRY) cautious on the outlook for groceries, merchandise, and clothing.
Retailers are hoping discounts tied to Black Friday will get shoppers spending again after a disastrous year for the sector which has seen several well-known high street retailers either go bust or left teetering on the edge.
One example was fellow department store chain House of Fraser, which collapsed into administration in August before being bought out by Sports Direct International PLC (LON:SPD).
READ: House of Fraser suppliers stand to lose millions of pounds from retailer's collapse
Debenhams PLC (LON:DEB) has also been struggling, having issued three profit warnings this year and seen its share price hammered. The stock was down 6.4% at 6.7p in early afternoon trading Tuesday.
Several factors have been blamed for the gloomy outlook on the high street, including consumer spending, higher business rates, rising wages, online competition, and the ever-pervading spectre of Brexit.