UK retailer John Lewis says it expected its online sales to smash through the £500-million barrier this year, as it delivered another stellar weekly performance in its department stores, while rival Marks & Spencer is expected to beat the same online target in 2010-11.
John Lewis reported internet revenues of £389.5 million in the year to 30 January with its online sales - up more than 40 per cent as of date in 2010, while rival Marks & Spencer is expected to beat the same online target in 2010-11.
Analysts say the confidence of the two retailer that it would surpass the £500-million mark each in web sales this year is significant as that means John Lewis and M&S alone would deliver more than £1 billion worth of online revenues this year.
They say the development shows the huge structural migration of retail sales from the high street to online.
They add that a powerful driver behind John Lewis' growth spurt is the launch of fashion online in September 2009. The company's web site now offers upwards of 300 brands, including Diesel, Aquascutum, Mulberry, G-Star and Radley.
According to Jonathon Brown, the head of online at John Lewis, fashion would play a significant role in getting more than £500 million this year.