Clothing sales boost for M&S
Strong first quarter across the board
July 16 2003
Marks & Spencer has seen an improvement in clothing sales as customers trade up to its more upmarket brands such as per una.
After a decline in the fourth quarter, clothing sales rose by 3.9 per cent in the 15 weeks to July 12, with total like-for-like sales for the first quarter up 3.8 per cent. Total sales were up 5.4 per cent.
M&S’ clothing ranges saw a 3 per cent increase in volumes, with the overall sales perfomance also helped by customers trading up.
M&S said price deflation, which has been a problem for other UK clothing retailers, has only had a “marginal” impact. However, the rise was below the level that some in the City had been hoping for from the UK’s leading clothing retailer. M&S also confirmed that childrenswear sales continue to be a problem.
Food sales grew by 5.1 per cent like-for-like and 8.1 per cent in total, as M&S continued to roll out its Simply Food format.
Home sales were hit by a slower furniture market, with total sales down by 1.4 per cent. From the next quarter, gift sales will be included with the home figures rather than clothing and footwear. On that basis clothing and footwear sales were up 3.7 per cent in the first quarter, with home sales up 1.4 per cent.
Chief Executive said Roger Holmes said: “We had a satisfactory first quarter in which we saw an improvement in clothing performance, particularly in June, with good food sales throughout the period.
“Sales progress has been made in adult clothing, particularly in per una which is now in its second year, together with improved performance in women’s and men’s formalwear. Childrenswear continues to underperform although we have seen some signs of progress. As planned, tighter stock commitments have delivered a reduction in the clothing stock going into the Summer sale.
“The performance of Home reflects our plans to be less promotionally driven, particularly in furniture, to build the right foundation for the long-term profitable growth of this business.
“Food continues to outperform the market through the on-going development of high quality, innovative products that continue to tempt our customers, together with the strong performance of Simply Food stores which are now opening at the rate of one a week.”
