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Online delivery woes hit M&S Q3FY15 sales
Jan '15
Hit by online delivery woes in the peak Christmas season, Marks & Spencer (M&S) reported the 14th consecutive quarter of decline in the general merchandise division sales for the thirteen weeks to December 27, 2014.

M&S posted a 5.8 per cent drop in like-for-like sales in the general merchandise division, which includes clothing, while like-for-like food sales grew by just 0.1 per cent, both from a year ago periods.

In the third quarter of fiscal 2015, online sales fell 5.9 per cent as against industry growth levels of 15-20 per cent and also despite M&S saying its internet sales would return to growth by Christmas.

M&S said the peak season in December was hit by its £200 million state-of-the-art distribution centre failing to cope with demand. M&S however said sales in the week before Christmas rose 17 per cent.

However, CEO Marc Bolland claimed that M&S was meeting three of its four strategic priorities, including hiking profit margins in general merchandise, generating extra cash, improving womenswear and expanding food sales.

Marc Bolland said that the quarter had been a difficult one in general merchandise due to an unsatisfactory performance in its e-commerce distribution centre and unseasonal weather conditions.

As per the latest interim result report, M&S operates 815 stores in the UK, 347 of which sell apparel and M&S has said it will not open any new clothing stores in the UK. (AR)

Fibre2fashion News Desk - India

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