Tax Row 'Helping John Lewis Online Sales'

Tax Row: Convenience Still Priority

Updated: 7:27pm UK, Sunday 09 December 2012

By Tadhg Enright, Business reporter

Recession? What recession?

So has been the mantra at John Lewis throughout the financial crisis during which sales growth consistently outperformed its high street rivals.

The recession is over but consumers are still expected to buy less, not more, this Christmas.

So could it be a bit of a stretch to suggest that stellar growth in John Lewis sales this past week has anything to do with Amazon's recent exposure as an avoider of UK corporation tax?

Speaking to Sky News, the retailer's boss Andy Street acknowledged "I can't prove it" and that it could all just be a coincidence.

While sales rose 15% over the past week compared to the same time last year, he pointed in particular to even higher (but undisclosed) growth in online sales.

But with internet shopping becoming more normal with each passing year, most online retailers are enjoying double digit growth.

And John Lewis has not been left wanting with its approach to so called "clicks and mortar" retailing.  It has been a trend leader rather than a follower so will naturally enjoy better growth than others.

Also bear in mind that John Lewis and Amazon are very different retailers and the overlap between their customer bases is thin.

Ask any business journalist and they'll tell you that John Lewis will take any chance to get a bit of free, positive publicity. Amazon has been more of a shrinking violet during the controversy over its taxes.

Business reporters who have been canvassing shoppers outside branches of Starbucks will also know that a majority of the people they speak to are oblivious to the scandal over its tax affairs.

Of those who know all about it, only a fraction are likely to avoid the tax-avoiders.

But Starbucks' u-turn shows just how serious some are taking the tax debate.

It has decided to pay £20m in corporation tax over the next two years, which, it maintains, it does not have to pay.

That wasn't enough though to prevent protesters occupying some of its cafes this weekend.

But it will be enough to convince the more nonchalant among us that it's ok to get your latte at Starbucks again.

In fact, consumer experts will also tell you that when a company puts right what once was wrong it can often enjoy a boost rather than a simple bounce-back in sales.

With 15 days to Christmas, the rush is on and many consumers simply don't have the time, energy or patience to change their habits.

Amid the chaos, shoppers are more likely than ever to put convenience before conscience.

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