Food props up sales at M&S
Total UK food sales (excluding VAT) at M&S rose by 4.5% for the period ending December 31, with customers refusing to cut back on festive food despite pressure on disposable income, according to the firm.
M&S attributed increased choice for consumers, with the introduction of 600 new lines, including dedicated Christmas products, as a contributing factor to the growth.
Budgets
M&S also revealed that it “remained cautious” about the outlook for 2012. It also highlighted a focus on increasing value for the consumer as they continue to feel the pinch from the global economic downturn.
Chief executive Marc Bolland said: “Our Food business performed very strongly as customers enjoyed our new and traditional Christmas products. This unique offer, coupled with our great deals, gave them more choice than ever before for a special Christmas at home.
The healthy performance in the food sector offset weaker trading elsewhere, however, with the firm posting a rise in like-for-like sales of 0.5% for the period.
Clothing and international sales also increased by 1.1% and 8.1% respectively but like-for-like sales of general merchandise fell by 1.8%.
Slump
This slump was also combined with a 13.3% decline in home division sales, which the firm blamed on its decision to withdraw technology products.
The firm said its expectations for the full year profit remained unchanged and claimed its decision to invest in promotions will result in lower margins for this year.
Bolland added: “I would like to take this opportunity to thank all of our employees for their hard work in delivering a great Christmas for our customers.”
Meanwhile, the British Retail Consortium (BRC) said that the UK retail sales were 2.2% higher on a like-for-like basis when compared with the same period last year. This was attributed to improved weather conditions around the festive period in 2011.
On a total basis, sales were up 4.1%, against a 1.5% increase in December 2010. On both measures and excluding Easter distortions, sales performance was the best since January, according to the BRC.
