There has been a drop in sale at John Lewis due to the hike in VAT rates. These figures have been the worst in the last 2 years. The department store chain has slipped to 2.2 percent drop in their sales figure to £50million. The experts claim that this loss is due to the rise in the VAT figures.
 
“It was a quieter week for John Lewis but the comparisons against last year are difficult to read due to the weather”, said a spokesperson.
 
Fashion sales are affected by 3 percent and the sale of electrical goods and technology by 3.7 percent.
 
The VAT was raised from the previous 17.5 percent to 20 percent and the falling wages values caused this scenario.
 
Market analysts warn other storeowners that if John Lewis is hurt then others might join the line. The CBI claimed that sales were slowing in January due to the rise in VAT.
 
Many stores have started giving a discounted price by 70 percent for the shoppers to have a great time shopping. These stores want the sales figure to rise.
 
Many shops started giving vat-free sales so that they can attract customers. There has been cut in prices of all categories. The market analysts feel that this can improve the sales figures.