Now even well-heeled John Lewis shoppers are cutting back

Sales at John Lewis fell for the seventh time in eight weeks it emerged today, the latest sign of strife on the High Street.

Until recently, the department store seemed to be defying the credit crunch, with sales rising despite the economic slowdown.

But over the last two months it has caught the cold that has been inflicting misery on rivals as even its relatively affluent customer base cut back on spending. In the week to the end of 28 June sales dived 8.3%.

"Taking a full week's perspective, there is no doubt that trade in our shops proved challenging when compared to exceptional results last year," the company said.

The figures come two days after a shock profit warning from Marks & Spencer - another barometer of the health of the UK economy.

The M&S warning led to a further collapse in retailer's share prices, with £4 billion removed from their collective stock market value.

John Lewis, a partnership owned by staff, is not on the stock market. It also owns upmarket stores chain Waitrose, which is still doing well. Sales at Waitrose for the same week rose 3%, though that is largely a reflection of rising food prices.

With house prices falling at their fastest pace for 15 years and inflation hitting pay packets, there's little hope of a respite for the High Street.

M&S faces a tricky annual meeting next week when small investors are likely to ask tough questions.

There is speculation chairman Sir Stuart Rose will struggle to keep his job.