John Lewis Christmas Trading Results
Department store stalwart John Lewis has posted a robust set of Christmas trading figures, translating through to a bumper l-f-l performance. Within this, all three product sectors made a positive contribution to growth, with home sales up 5.1%, fashion up 6.1% and EHT (technology) the stand-out performer with sales rising 9.6%. These results demonstrate that the retailer’s emphasis on quality and service, alongside investment into fulfilment, continues to be favoured by consumers.
Christmas Trading Results
Total sales +6.9%
Like for like sales +5.1%
UK sales (no change)
UK e-Commerce 21.4% (monetary value £380.5m)
For the six weeks ended 2nd January 2015
John Lewis announced that trading patterns over the six week period have taken on a new shape this year, with three peaks emerging around Black Friday, Christmas and clearance. In fact, the first week of clearance sales jumped up on a double-digit basis versus last year, as pent up demand was released and consumers came out in force to hunt for a bargain. Crucially, John Lewis reported that each peak came with a different channel mix; indeed, its ability to adapt and respond to fluctuating demand instore and online, supported by an efficient supply and logistics network, was tantamount to its success. Distribution teams processed significantly more parcels on Black Friday this year, amounting to five units per second during peak.
Online has played a major part in the retailer’s success this year; as it saw a surge in e-commerce sales whilst its m-commerce platform grew ahead of all other channels. Click & collect orders also rose this year with half of online orders collected in this way. This is a powerful tool for retailers as it means consumers are directed into stores and our research from Conlumino’s 2015 channels and fulfilment report indicates that around half of these will then go on to make an additional purchase instore.
Importantly, in light of concerns in the wider market that unusually warm weather in November and December may have hampered trading, John Lewis has emerged from the festive period unscathed. It has demonstrate the ability to adapt to evolving consumer trends and as a result expects its full-year profit to be in line with previous guidance at between £270m – £320m.
Source: Conlumino Viewpoint