Strong online sales of John Lewis:Nespresso coffee machines in the UK
John Lewis, the largest department store group in the UK, reported another strong rise in weekly sales, mainly due to strong consumer demand for technology products and its initial clearance and price reduction program, Reuters reported.
The retailer, which is owned by employees, has been biased against the south-east of England and said on June 29th that its sales rose 9.9 per cent year-on-year to 76.12 million pounds ($1180.3 million) in the week to June 23. Of this total, sales of electronic products and household technology products rose 28.2%, clothing revenue increased by 6.9%, and household goods sales increased by 1.6%. Peter Ruis, director of purchasing and brand at John Lewis, said sales of electronic products in John Lewis stores will continue to rise. Most of the sales growth comes from customers' continued purchase of new technology products provided by the communications technology department, and the department's sales have increased by as much as 78.2%. As many customers are actively preparing for the holiday, sales of apple products at the retail store are up sharply, and sales of e-readers are up 20%.
Despite the recession in the UK economy, the retailer's growing customers have made it outperform the UK market as a whole. In addition, the group's improvements in products and services as well as the new modern stores are favored by consumers. However, John Lewis's higher sales are actually mainly due to the fact that it has opened more stores this year than last year, as well as higher prices for products sold due to inflation. In addition, the profit margin of electronic products is actually relatively low. The retailer's online products also sold well, with sales up 36.1%, mainly due to strong demand for bulk purchases of Nespresso coffee makers and 50-inch Panasonic televisions.
High prices, limited wage growth and fiscal austerity measures introduced by the government to reduce record national debt have made consumers less willing to spend money, putting pressure on many UK retailers. But on June 26th Debenhams, Britain's second-largest retail store group, reported that its sales had risen 3.1 per cent in the past 16 weeks. Retail sales in the UK are growing at the fastest pace in the six months to the year to June as Britons scramble to celebrate Queen Elizabeth's Diamond Jubilee, according to an industry survey earlier this week. In addition, John Lewis owns Waitrose, an upscale supermarket chain, whose sales rose 1.8 per cent to £107.5 million in the week to June 23.
(responsible Editor: Leo)
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