John Lewis Partnership has warned full-year revenue at its department stores could slide by 35% if sales drop significantly in the next three months and remain weak thereafter.
John Lewis has seen a 17% drop since the middle of March, just before the UK enforced a lockdown.
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All 50 branches are closed and though the online platform remains open customers have focused on the less profitable lines, as “we are buying more Scrabble but fewer sofas”.
Conversely, food arm Waitrose saw sales rising by 8% since 26 January as demand for groceries has spiralled up, although operating costs have increased too.
The partnership said it is holding “broadly the same level” of liquidity posted for the end of January - £900mln in cash and £500mln of undrawn committed bank facilities.
The business rates holiday is saving £135mln in the year to January, while it is reducing costs by cutting marketing spend, furloughing staff and negotiating rent relief.