M&S general merchandise sales down 2.1% in third quarter
Marks & Spencer saw a 2.1% decline in its third quarter like-for-like sales within its general merchandise division which the retailer attributed to unseasonal weather and higher levels of discounting within the market.
However, food sales rose by 1.6% on a like-for-like basis in the 13 weeks to 28 December with record sales over the Christmas trading period.
Overall in the quarter, the retailer’s group sales rose by 1.8% which included a 0.2% drop in UK like-for-like sales.
Chief executive Marc Bolland said the retailer had seen an improved performance in the eight weeks to Christmas Eve with general merchandise like-for-like sales up 0.5% and food sales up 1.5% on the same basis. However, an exceptionally unseasonal October had affected clothing sales and, as a result, the retailer’s quarterly performance was below expectations.
Never Miss a Retail Update!Marks & Spencer said the quarter had been challenging for clothing due to the unseasonal weather conditions and high levels of discounting in the market. Having held its full price trading stance for much of the period, the retailer introduced a number of promotions in the run-up to Christmas as promotional activity in the marketplace intensified.
In contrast, Marks & Spencer’s food business delivered record sales over the festive period, with sales up 6.1% over the key Christmas and New Year trading period covering the three weeks to 4 January. This included the retailer’s biggest ever day on 23 December with sales of £64 million, which was a 17% rise on the previous record set in 2011. The retailer launched around 800 new products for Christmas which helped to deliver record results in party food, desserts and deli.
Online sales at M&S.com climbed by 22.7% in the quarter with online general merchandise sales up 32% over the eight week Christmas trading period. This was driven by an increase in traffic to the site as well as conversion, which was ahead of last year. The retailer said its customers had increasingly turned to mobile devices, with orders from tablets up over 100% and mobile phones up over 80% in the period.
International sales increased by 4.5% in the quarter and by 8.2% over the eight weeks to Christmas.
Looking ahead the retailer said: “Given continued pressure on disposable incomes, we remain cautious about the outlook. Our focus is on continuing to transform Marks & Spencer into an international, multi-channel retailer.”
