News Flash

M&S reports clothing sales down during 14 weeks to July 9

13 Jul '05

3 min read

UK's largest online retailer Marks & Spencer informed quarter 1 trading statement for 2005/06 for fourteen week ended 9, July 2005.

- UK Retail Sales down 3.1%.
- General Merchandise down 10.3%
- Food up 5.0%
- Full price sales of General Merchandise down 2.4%
- 40% less stock to go into Summer Sale
- Margin and cost targets unchanged

UK Retail Sales for the 14 weeks to 9 July 2005 were down 3.1% in total with General Merchandise down 10.3% and Food up 5.0%. Within this Clothing was down 9.2% and Home down 22.3%. Like for like sales were down 5.4% in total (Q4 04/05: -6.3%) with General Merchandise down 11.2% (Q4 04/05: -9.2%) and Food up 0.7% (Q4 04/05: -3.1%).

Within General Merchandise, full price sales were down 2.4%. We have seen an improving trend in full price sales over the last three quarters.

This quarter reflects the focus on profitable sales, improvements in product and the timing of the Summer Sale. We continue to focus on offering outstanding value. In clothing we have significantly reduced prices year on year to ensure that our opening price points are highly competitive. Customer reaction to the new opening price points has been good and volume growth substantial.

Food has performed well. We have improved product innovation, service and availability and there has been a positive reaction to our recent advertising campaign which highlights our outstanding quality and value.

Stuart Rose, Chief Executive said: The trading environment continues to be very tough. We are pleased with the progress in Food with its return to like for like sales growth. In General Merchandise, the figures reflect the significant change in our trading stance compared to this time last year when our priority was to clear overstocks. This was achieved through deeper markdowns and extended sale periods. This boosted sales figures but impacted profitability.

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