Managing director, Andy Street, said: “We think this is a really decisive move. We have been getting progressively nearer to it. This is the last step. This is eradicating the last moment of doubt.”

He believes the decision might be most felt in the electricals market. Across the partnership he expects to hold margin, with better buying prices in other sectors offsetting the probable decline in electrics. He relishes the challenge of now being ‘straight up against’ the likes of Comet and Dixons Retail.

In the nine months to the end of September, John Lewis Direct has increased sales year-on-year by an impressive 39%, over twice the rate of the market according to the latest figures from the IMRG Capgemini e-Retail Sales Index. These revealed that a total of £4.4 billion pounds was spent online during August, up 15% year-on-year. The year-to-date increase is similar.

Electrical goods are clearly a main driver of this growth and are running 28% higher than last year; the average spend of over £200 has helped push that measure to a three-year high.

John Lewis now sees itself as a major player in the online sector and has set its sights on doubling web sales to £1 billion by 2014.

Trading round up

Dixons Retail reported a 6% like-for-like growth in the UK in the twelve weeks to 24 July, due mainly to a good World Cup performance and its 60-day exclusivity of the iPad. But it under-performed in 2009 so the comparatives were weak. Internet sales rose by 12%. In the same quarter Comet’s like-for-likes rose by 4% though margins suffered. Web-generated sales increased by over 13% and now represent 14% of total product sales.

Argos’s deteriorating sales performance continued into its second quarter, with like-for-likes down by 5%. It struggled with video games and large ticket items, but computers, white goods and toys all continued to show good growth. Television sales disappointed. The internet now represents 32% of Argos’s sales in total, up from 28% a year ago. Margins were reduced, due to adverse currency and shipping rates, and higher promotional activity. Terry Duddy, chief executive of parent Home Retail gave a very downbeat assessment of prospects saying that its core mass-market has been ‘hammered by the recession and hasn’t got out of it’.

John Lewis, as ever, gives the most up-to-date sales monitor. ‘Electricals and home technology’ in August and September were 6% higher than last year, but this included the benefit of three new stores (Cardiff, and two ‘at home’ outlets in Poole and Croydon). That compares with a 17% increase in fashion and 13% in household goods.

No impact

Best Buy has announced a further three openings for next year. Following its launch in Thurrock in the spring, it has since added Hedge End, Merry Hill, Aintree, Croydon and Derby. For 2011, in addition to the previously announced Cribbs Causeway and Nottingham, it will now add Hayes, Rotherham and Enfield. Eleven stores by the end of 2011 may be a little lower than initial expectations, but the geographical coverage is growing significantly.

However, John Browett, chief executive of Dixons Retail remains unfazed: “There was so much hype you’d have thought that customers’ heads would be turned. The reality is we’ve seen no impact.”

Comet too is playing down any Best Buy effect. It has introduced a new store image and a ‘come and play’ TV campaign, built around the idea of being a ‘nationwide independent’ in an effort to distinguish itself from rivals with even bigger sheds. It insists that change in approach would have been made regardless of Best Buy’s arrival in the UK.