.jpg) According to Marks and Spencer’s 3Q interim statement ,the company is expecting pressure on consumer spends this year. The Group's UK sales went up with 4% and like for like with 2.8%. Even though sales increased M&S remains
cautious about the future. Sales were lost when severe weather took over the first days of the clearance sale after the holiday season.
.jpg) Clothing market share was up 70bps to 11.8%1 (Kantar: 12 weeks ending 1 November 2010) with growth across all areas. Customers responded well to M&S’s interpretation of the season’s key trends such as Fair Isle knitwear and accessories. Managing their budgets carefully, customers came to M&S for wardrobe staples, with sales of underwear, sleepwear and footwear performing strongly.
The British department store ran bigger promotions, such as their Deals of the Week and half price champagne, which proved to be popular. M&S Direct sales were up 25% in the quarter, as it came up against the anniversary of the launch of the company’s Shop Your Way service. International sales were up 4.5%, reflecting a good performance across most of the markets offset by difficult trading conditions in Ireland and Greece.
Marks & Spencer expects the trading conditions to be more challenging as consumers’ disposable incomes come under pressure from increased VAT rates and the impact of public spending cuts. In addition, they are facing increased commodity prices and significantly tougher comparatives. As a result the company remains cautious about the outlook, but are confident to meet the changing needs of our
customers.
Image: M&S
|
