Mixed bag for Marks & Spencer
Sales at Marks & Spencer fall for the seventh quarter in a row.
But company sees an improving trend in full price sales over the past three quarters
UK Retail Sales for the 14 weeks to 9 July 2005 were down 3.1 per cent in total with General Merchandise down 10.3 per cent and Food up 5.0 per cent. Clothing was down 9.2 per cent and Home down 22.3 per cent. Like for like sales were down 5.4% in total General Merchandise down 11.2% and Food up 0.7%.
Within General Merchandise, full price sales were down 2.4% but M&S has seen an improving trend in full price sales over the past three quarters . The company said that customer reaction to the new opening price points has been good and volume growth substantial.
Stuart Rose, Chief Executive said: ‘The trading environment continues to be very tough. We are pleased with the progress in Food with its return to like for like sales growth. In General Merchandise, the figures reflect the significant change in our trading stance compared to this time last year when our priority was to clear overstocks. This was achieved through deeper markdowns and extended sale periods. This boosted sales figures but impacted profitability.
[img l]stuartrose.jpg[/img]’Our focus remains full price profitable sales, improving our financial performance through margin, cost and markdown management. We have made good progress. This has enabled us to delay the Summer Sale by 18 days. We go on Sale tomorrow with 40% less stock than last year. ‘While the trading environment remains very challenging, better buying, stock and cost control should enable us to make further progress.’
