Tesco and Marks & Spencer report strong Christmas sales
- by Emilio Sims
- in Money
- — Jan 13, 2017
M&S's clothing sales have been disappointing for the past five years despite constant efforts to turn the ship around.
The supermarket giant said United Kingdom like-for-like sales in the six weeks to January 7 rose by 0.7%.
The long-awaited turnaround in fortunes for Marks & Spencer's fashion business could be upon us as the retailer posted its first quarterly growth in Clothing & Home sales in six years after a strong Christmas.
Rowe said that "better ranges, better availability and better prices" helped to improve its performance in a "difficult marketplace".
It said overall LFL sales were held back by declines in Germany and the Netherlands, where it has been increasing its selling space.
Going forward, Rowe warned fourth-quarter results, due on 24 May, will be adversely affected by sale timing and a later Easter.
Sales took a 0.8% hit from not repeating the Clubcard "Boost" promotion but the company recorded strong performance in clothing and toys, with sales up 4.3% and 8.5% respectively.
The boost in clothing sales was attributed to the retailer's new strategy, cutting prices for almost a third of its ranges and increasing shop floor staff. "Against the background of uncertain consumer confidence the business remains focused on delivering the strategic actions announced past year".
In November Rowe, who replaced former boss Marc Bolland in April, announced the retailer would close 30 United Kingdom clothing and homeware shops and convert dozens more into food stores.
He said: "We intend to grow the business".
It was the first period of like-for-like growth for the company for almost two years and comes as the first over the festive season for six years. Total UK sales were up 4.5% year-on-year and by 1.3% on a like-for-like basis.
The department store chain posted a 3.5pc rise in like-for-like sales over the 18 weeks to January 7, with United Kingdom like-for-like sales lifting by 1pc, buoyed by sales of 300,000 eye-shadow palettes and 4m perfume bottles.
