Marks & Spencer general merchandise sales down 5.8% in run-up to Christmas
Marks & Spencer saw its like-for-like general merchandise sales fall by 5.8% in its third quarter as performance was impacted by unseasonably warm autumn weather and disruption at its Castle Donington distribution centre.
On a total basis, general merchandise sales including clothing fell by 5.4% in the 13 weeks to 27 December.
Subscribe to TRBMeanwhile, online sales dropped by 5.9% due to problems at its distribution centre.
However, total food sales climbed by 2.8% with like-for-like sales edging up 0.1% in the period. In addition, the retailer achieved record sales in its key Christmas week with sales surging by 17%.
Marks & Spencer chief executive Marc Bolland said: “M&S had a very good Christmas in food. We delivered record Christmas sales, strongly outperforming the market. We had a difficult quarter in general merchandise, dominated by unseasonal conditions and an unsatisfactory performance in our e-commerce distribution centre. We maintained our focus on general merchandise gross margin, with guidance unchanged.”
The retailer’s international sales fell by 5.8% after being impacted by the worsening currency and macro-economic issues across its Middle East and Russia franchise region. However, its owned business fared better with a strong performance in key markets such as India.
