Marks & Spencer sales down across the board
Retailer facing uphill struggle for recovery
Marks and Spencer has reported a sales decline across the board, indicating the scale of the problems facing the high street giant as it implements its recovery strategy.
Across the three months to March 27, total sales fell by 0.1per cent, with like-for-like sales down 3.4 per cent. Across the year, total sales have grown by 1.8 per cent, with like-for-likes down 0.4 per cent.
Chief executive Roger Holmes said: “Sales this quarter are clearly not good enough. We are taking action on a number of fronts to accelerate the transformation of the business and deliver improved performance.
“These include delivering greater consistency in the appeal of our Womenswear, more inspirational stores and sharpened execution. At the same time, we are driving improvements in the way we work across stores, head office and the supply chain.”
[b]Sales Breakdown [/b]
[b]11 weeks to March 27:[/b]
[L]Clothing -2.5%[/L]
[L]Home -4.6%[/L]
[L]General (clothing/home) -3.9%, -5.2 like-for-like[/L]
[L]Food +4.3%, -1.4% like-for-like [/L]
[b]52 weeks to March 27:[/b]
[L]Clothing -0.5%[/L]
[L]Home -4.6%[/L]
[L]General (clothing/home) -1%, -1.8% like-for-like [/L]
[L]Food +1.8%, -0.4 like-for-like[/L]
[img r]lifestoreradice.jpg[/img]With Vittorio Radice now installed as general merchandise director, joined by Mark McKeon as retail director. M&S said it has also strengthened its womenswear buying teams. Prices on some key womenswear lines have been lowered, with more entry level prices. The company said its average selling prices for spring/summer womenswear are down down around 3.5 per cent.
M&S said it is also increasing our clothing choice in its high street stores, following successful trials. A product choice increased by 35 per cent will be available in 90 stores by the autumn.
There will also be clearer product segmentation on womenswear salesfloors. A new ‘inspirational’ store design will be carried through to six new stores, and some store revamps.
In home, M&S said sales have been affected by the repositioning of its offer. M&S said it is ‘delighted with the interest’ in its first Lifestore, ‘but it is early days’.
In food, M&S said it has maintained market share, but said the like-for-like sales fall across the quarter is ‘disappointing’. The company said there had been inconsistent execution across a number of key categories and events.
Holmes later said this included a failure to cater for the post-Christmas diet market and a disappointing offer for Mother’s Day. He said lessons learned had been applied to the Easter food range, which has seen better sales.
[img l]m&seaster2.jpg[/img]M&S said it is developing more distinctive food products, increasing advertising for its food offer, establishing a clearer promotional programme and improving availability, particularly in smaller stores.
M&S said its combined &more credit and loyalty card now has 2.1m accounts and 2.7m cardholders, with 1.5m customers having been issued with reward vouchers.
