John Lewis warns of sterling fall risk
Department store group says drop in value of UK currency could become a "big issue"
- Sharpest drop in consumer confidence in 21 yeara after Brexit uncertainty
- Britain's shock vote to leave the EU has caused pound to drop to lowest value against the dolalr in 31 years
Updated : 15:00
The managing director of John Lewis has said that the decrease in the value of the pound could be a "big issue" for the department store group.
Britain voted to leave the European Union last month in an unexpected referendum result which has led to economic uncertainty in much of Europe, none more so than in the value of the UK currency, which has fallen to a 31-year-low against the US dollar.
“Genuinely it is a big issue for us to face into next year,” John Lewis managing director Andy Street told reporters at a media dinner.
Britain voted to leave the European Union last month in an unexpected referendum result
About two thirds of goods that the company sells is in dollars, and around one third that it buys also.
The comments from Street have come after a survey revealed consumer confidence in the UK has dropped to its lowest level in 21 years.
The political ramifications have been equally as severe, with the landscape at Westminster turning on its head following the resignations of prime minister David Cameron, Ukip leader Nigel Farage, and the intense divide created in the Labour party in which Jeremy Corbyn's leadership hangs bya thread.
“At the moment this is a political crisis, it's not an economic crisis. But one could turn into the other if not properly handled,” said Mr Street.
Street says that they may not see an immediate effect on their business this year, despite witnessing a slowdown in sales this week, and that the long-term damage may be more telling.
“If we are into tougher times, it's our model, our ability to do things that are counter cyclical and possibly even counter intuitive that will see us through,” he said.