Marks & Spencer sales slowdown as clothing slips
Like-for-likes growth slower in second quarter
October 7 2003
Marks & Spencer has seen UK sales growth slow across the summer, with clothing sales hit by the extended period of hot weather in August and September.
However, the high street giant said it had maintained clothing market share in a market in which most retailers found sales harder to come by.
Across the half year to September 27, total UK sales increased by 4.2 per cent, with like-for-likes up 2.4 per cent. The growth rate slipped in the second quarter, with total sales in the 11-weeks to September 27 up 2.6 per cent and like-for-likes up just 0.6 per cent.
Across the eleven week period, clothing and footwear sales grew 0.9 per cent and home sales fell by 1.7 per cent. Food sales were much stronger, up by 5.4 per cent, boosted by the opening of new food space including the expanding Simply Food chain.
M&S said sales of clothing at full price increased by around 3 per cent, with 10 per cent less stock than last year in the summer sale. Home had seen progress in most categories, “but as expected furniture sales declined, as we re-position our business in a market driven increasingly by promotional activity.”
Chief executive Roger Holmes said: “Clothing performance this quarter has been reasonable. We have delivered a 3 per cent increase in full price sales and put less stock into the Summer sale. The continuation of the hot summer weather did not help our clothing performance in September, but overall we have held market share for the half-year.
“As expected, home sales have been impacted by the changes we are making to build stronger foundations for future growth, plans for which include the opening of the stand-alone Lifestore in early Spring.
“Food performance remains strong, with the Simply Food format being well received by our customers.”
