Department store spending continues to fall

New data has shown that spending in department stores has fallen for the 13th consecutive month.

Data from Barclaycard users’ spending showed that spending in department stores across the UK has fallen by 7.1% year on year.

The sector remains one of the hardest hit as stores struggle amid the rise of online rivals, the decline in consumer confidence and Brexit uncertainty.

Whilst John Lewis reported record sales during Black Friday week and revealed 7.7% rise in sales compared to the same week a year previous, sales went on to fall almost 6% after the US-inspired retail holiday.

Laura Suter, a personal finance analyst at investment firm AJ Bell, said: “Department stores took a pummelling in November. The problems faced by the likes of House of Fraser and Debenhams, and questions about the stores’ future, have likely put many off shopping with the brands.”

The news comes after Mike Ashley blasted MPs on the lack of effort going onto the dying high street.

The Sports Direct (LON: SPD) boss told MPs on Tuesday that a 20% retail tax was necessary on retailers that make more than a fifth of their sales online.

“It is not my fault the high street is dying; it’s not House of Fraser, not Marks & Spencer (LON: MKS) or Debenhams’ (LON: DEB) fault,” said Ashley.

“It is very simple why the high street is dying. It is the internet that is killing the high street. The vast majority of the high street has already died. In the bottom of the swimming pool, dead.”

A spokesperson from the Treasury said on Ashley’s tax suggestion: “As the chancellor made clear in the Budget, an online sales tax would be passed onto consumers. That’s why we’re putting £675 million into a Future High Streets Fund instead to help high streets to evolve.”

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.