M&S sales rise
First quarter statement shows recovery on track; Vandevelde to step down
July 10 2002
Marks and Spencer saw a 9.1 per cent sales rise in its first quarter, with the core clothing business up 14.8 per cent.
The figures, for the 14 weeks to July 6, show that the High Street retailer’s recovery is still on course. Compared to the same period in 2001, homeware sales were up 5.9 per cent.
Food, which was never as badly hit by the retailer’s downturn than other product area, rose by a more modest 2.9 per cent in a sector hit by price deflation across the board. Food sales were also affected by the early Easter. Adjusting for this, the company said progress would have been 4.3 per cent.
Like-for-like sales were up 12.7 per cent in general merchandise, which includes clothing and homeware, and 1.5 per cent in food.
The company said clothing sales improved in all adult clothing areas, with the best performance in womenswear, a key area targeted for improvement. Last Autumn saw the launch of the Per Uno clothing range, designed to attract more fashion-conscious customers back to the stores
Luc Vandevelde, chairman and chief Executive said: “I am pleased with the performance over the last quarter which demonstrates we are securing the recovery. This is the second consecutive quarter where we have increased market share in clothing, reflecting the continuing progress we are making in improving the appeal of our clothing and the store environment. Within food, we have maintained share in a very competitive market.
“We were trading this quarter against weak comparative sales last year in clothing and looking ahead our comparatives become progressively more challenging. In addition, while current conditions on the High Street remain favourable, the environment is likely to become less buoyant as the year progresses. We are confident, however, that we can continue to recover lost ground as we make on-going improvements to the appeal and quality of our ranges and the overall shopping experience for our customers.”
As expected, M&S has confirmed that Vandevelde will step down as chief executive, handing the job over to Roger Holmes, currently managing director of UK retail. Vandevelde will remain chairman, a role which will become part tme from January 2003.
