Foreign Exchange - Economy Boost for British Stores

J. Lewis has record online start to clearance sale

LONDON, Dec 28 (Reuters) - Bellwether British retailer John Lewis [JLP.UL] reported a strong online start to its seasonal clearance sale, adding to signs shoppers might be out in force ahead of a rise in VAT on Jan. 1.

John Lewis said on Monday online sales rose a record 23 percent in the first three days of its clearance event, which started at 1800 GMT on Dec. 24.
 

The employee-owned group, whose in-store clearance sale starts on Monday, said Dec. 26 saw the highest ever number of visits to its department stores Web site.

Retailers are increasingly using the Internet in a bid to steal a march on rivals and capture a big chunk of the traditional post-Christmas spending frenzy.

Some analysts think clearance sales this year could be especially strong ahead of a rise in VAT sales tax on Jan. 1. [ID:nLDE5BL18N]

Researchers Experian said on Sunday shopper numbers were up 18.6 percent on Dec. 26 compared with the same day last year.

Prospects for a sustained pick up in consumer spending look less certain, however, with economic growth likely to remain sluggish, wage increases muted and more tax rises expected in order to reduce government borrowing. [ID:nLDE5BG0XT] (Reporting by Mark Potter; editing by Chris Pizzey)

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Article Reference: uk.reuters .com/article/idUKLDE5BR0B220091228

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