M&S confirms poor clothing sales
Search underway for new head of clothing
January 14 2004
Marks & Spencer has confirmed that it has seen poor clothing sales over Christmas, and has launched a hunt for a new head of clothing.
Over the seven weeks to January 7, clothing sales fell by 3 per cent, with a decline of 3.3 per cent over the 15 weeks to January 10.
With a strong food performance, total group sales are down 0.4 per cent over the 15 weeks, and like-for-likes down 2.5 per cent.
Chief executive Roger Holmes, said: “Total sales were marginally down this quarter, with growth in food sales offset by a disappointing clothing performance.”
The company confirmed that David Norgrove will step down as director of clothing, and will leave the board once a new head of clothing is appointed. Until then, he will focus on the M&S supply chain efficiency. Retailers including Belinda Earl, former chief executive of Debenhams, and New look boss Stephen Sunnucks have been linked to the job.
Holmes said: “The fall in clothing sales was driven by a weak performance in certain key womenswear areas, notably knitwear, coats and suits, where our ranges were not strong enough and the warm weather had significant impact. Where the product was right, such as in per una and casualwear, we achieved strong sales growth.
“Sales in Lingerie improved, outperforming the market and menswear was marginally down, in line with the market. Childrenswear sales were down overall, although full price sales were up 4 per cent, with significantly less discounting than last year.”
Homeware products also underperformed, and the company is repositioning its ranges in preparation for the opening of the first Marks & Spencer Lifestore in Gateshead next month
Holmes said. “Food performance was adequate and we held market share over the period. We opened 22 Simply Food and Food stores, adding c.100,000 square feet of new food space over the quarter. Overall these formats are performing in line with our plans and we are pleased these stores are attracting new customers.
“With non-food sales below plan, we controlled commitments tightly and put less stock than last year into the January sale, which has since cleared well.”
M&S said that just under 1.7m customers had signed up to its &more credit and loyalty card by end of December.
