John Lewis sales rise 2.4% over holiday period

Same-store sales at John Lewis were flat over the key Christmas and early clearance trading period, the department store retailer said today (5 January), but cautioned that the next few months are likely to be "extremely tough."

For the five weeks to 3 January 2009, total sales were up 2.4%, with fashion sales (including beauty) rising 4% compared with the same period last year.

Andy Street, managing director, said: "I am really encouraged by this performance."

He added: "Whilst we expect the next few months to be extremely tough, we are confident that our continuing focus on inspiring products, great value and differentiated service leaves John Lewis well positioned to meet customer needs in this challenging time."

Retail sales decline

Like-for-like sales fell 2.6% and total sales fell 0.4% in November according to the British Retail Consortium.

The BRC said it was the first time its sales monitor had shown two consecutive months of declining total sales.October sales showed a decline of 0.1%. The monitor began in 1995. Clothing sales decline got worse in November and even discounting and promotions largely failed to tempt shoppers over the month. The BRC said the clothing sales declines got worse in November with sharp falls in sales of both menswear and womenswear although kidswear showed a small gain. . Fashion sales have now been lower than year earlier levels for 13 of the past 14 months.

Even Internet and mail order sales also slowed although they were still up 9.5% in November. However this was against a rise of 16.6% in October.

Department store trading worsened further. Fashion sales in department stores slowed and premium ranges, which had previously held up, also weakened.

BRC director general Stephen Robertson said: "The numbers speak for themselves - these are clearly tough times...Retailers will be hoping that customers have been putting off Christmas shopping - not cancelling it."

(source: www.drapersonline.com)

M&S and Debenhams roll out more price-cutting campaigns

British retailers Marks & Spencer and Debenhams will both roll out another massive discount campaign before Christmas, less than a week after their last mega-sales. The reason for that is the credit crunch. Debenhams deputy chief executive Michael Sharp said, that this year it is been more important than ever to offer great festive value. So Debenham cuts its prices by up to 20% from tuesday to Thursday.

US ad spending forecast to drop 5-8% in 2009

Advertising spending in the US is expected to come under increasing pressure in 2009, with an industry executive forecasting a 5-8% decline. A fall that size would mark the biggest drop for eight years, and Steve Lanzano, COO at MPG North America, said local advertising such as radio, television, newspapers and traditional billboards would be hit hardest, Reuters reported. MPG North America is a unit of the French advertising group Havas SA. Speaking at the Reuters Media Summit in New York, Lanzano said the second and third quarters next year would be crucial. "I think if the economy continues to go south, you're going to see some real hits across all media in the second and third quarter of next year," he said. (taken from wgsn-edu.com)

Urban Outfitters news

Martin Parker, the European managing director of US young fashion chain Urban Outfitters, is retiring after 35 years in retail.

Hugh Wahla, who was previously buying and trade director at the European operation, will replace Parker upon his departure.

Parker began his career at the Burton Group and joined Urban Outfitters seven years ago. He was credited with translating the US business and building up a successful retail proposition in the UK and Europe.

Retail headhunter Paul Meechan said: "Martin is a joy to work with and has a superb knowledge of the market."

Urban Outfitters has 14 European stores, including UK shops, in London, Bluewater in Kent, Birmingham, Leeds, Manchester, Liverpool, Glasgow and Belfast. 
The Urban Outfitters group is also planning to launch its Anthropologie fascia in the UK. It is understood to have looked at sites on London's Regent Street and hopes to open 20 to 40 Anthropologie stores in Europe within five years.

Anthropologie's European operation will be run by  managing director of Anthropologie Europe, James Bidwell. 

(taken from www.drapersonline.com)