Sales at John Lewis stores rose 20% last week, compared to the previous week, and online sales hit record levels.
John Lewis said that it had seen a "significant improvement" to sales over the week to December 6, with kidswear and toys, along with home furnishings and home entertainment, performing well.
The company said that the early passing on of the 2.5% VAT reduction and John Lewis' price matching policy had continued to help boost sales.
However sales remained 6.7% down on the same week last year.
John Lewis said that it had beaten last year's record online sales week by £500,000. Last year's biggest online week ended December 15. Internet sales were driven by demand for gifts, Christmas decorations, furnishing accessories, home electronics and toys.
Today is expected to be the biggest day ever for online sales at johnlewis.com.
John Lewis director of selling operations Nat Wakely said: "This week's much stronger sales have borne out our belief that John Lewis' strong and innovative Christmas products, customer service and price matching will ensure our continued position as a market leader over the festive period.
He added: "The next two weeks are absolutely crucial for us and all high street retailers but we are confident that the upward sales trend will continue."
"We are thrilled to be going into this week having already broken the record for weekly online sales. It is also really encouraging that we have seen 'Click and Collect', the service which allows customers to buy online and then collect the product from a John Lewis shop, have its best ever week with orders up 41% on the previous week."