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UK's John Lewis weekly dept stores sales fall 13 pct

Published 11/30/2008, 09:47 AM
Updated 11/30/2008, 09:50 AM

LONDON, Nov 30 (Reuters) - John Lewis Partnership, the employee-owned group seen as a barometer of British retail spending, said on Sunday its department store sales fell 13 percent in the week to Nov. 29, from a year earlier.

Trade was impacted at the start of the week by the announcement of an upcoming cut to value added tax (VAT) -- to 15 percent from 17.5 percent -- by the government and as news that retailers Woolworths and MFI had gone into administration hit consumer confidence, said John Lewis in a statement.

For the previous week, to Nov. 22, department store sales also fell 13 percent compared with the year-earlier period.

In the last seven days, trade rose 10 percent compared with a week ago as Christmas shopping began to take off.

Sewing machine sales more than tripled in many branches, the retailer said, lending weight to the theory that this Christmas will see a 'Craft it Yourself' trend.

Sales picked up significantly towards the end of the week as the group passed on the VAT reduction early, the statement said.

"The next three weeks' trade will be crucial to the high street," Retail Operations director Patrick Lewis said.

"We are confident that John Lewis' strong and innovative Christmas products, services and price matching will ensure our continued position as a market leader." (Reporting by Rosalba O'Brien; Editing by Andrew Macdonald)

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