John Lewis sees profits fall by 26.8%

John Lewis saw sales of home technology increase during 2008, but it was not enough to stop the retailer’s profits falling by over a quarter.

Blaming falling consumer confidence, the retailer said that the increase in sales of 2.9 per cent its electricals and home technology (EHT) department had failed to stem the decline in sales home related goods. The department store chain saw profits fall of 26.8 per cent to £53.5m on flat sales.

Despite that EHT managed to increase its market share, according to the retailer.

In a statement to the city, it said: "Our profits fell as a direct consequence of the decline in sales in established shops and the cost of new openings. Our margin held up well, despite greater price competition."

However, the retailer was much more positive when it came to its levels of service and the benefits it had for the business during 2008: "Our commitment to value and price through Never Knowingly Undersold proved particularly successful and the reductions in price were rewarded with higher volumes and increased market share, especially in TVs."