M&S food sales slide over Christmas

M&S

Marks and Spencer’s sales fell over the key Christmas period, while Tesco reported record trade festival.

M&S said sales fell 1.4% in the 13 weeks to 30 December. Clothing and linen for the house is down 2.8%, while the food, seen as his most successful sector, is down 0.4%.

By contrast, Tesco in the UNITED kingdom, sales rose 2.3% in the 19 weeks to January 6.

The supermarket has said, he has enjoyed “record sales volumes,” in the four weeks preceding Christmas Day.

Shares in M&S fell by 5.6%, while Tesco shed 4.8%.
Christmas Shopping: the winners and the losers

The two trading updates came as other retailers released the data for the Christmas period.

John Lewis said comparable sales increased 3.1% for the period of six weeks to 30 December, while its supermarket chain Waitrose posted a total of 1.5% increase compared to the same period in 2016.

In other points of sale news:
Department store House of Fraser said that sales in stores for six weeks to 23 December fell by 2.9%, while sales were down 7.5% in the period
Online fashion retailer Boohoo said that in the UNITED kingdom, revenues increased 107% in the last four months of 2017
‘Poor performance’

All three of the major retailers mentioned the difficulty of the market and difficult trading conditions, with Tesco, which speaks of “inflationary pressures” and M&S, referring to “the ongoing trading pressures”.

Sir Charlie Mayfield, chairman of John Lewis Partnership, said he expected trading to remain volatile” because of the economic environment, and anticipate that the intensity of competition will continue”.

M&S chief executive Steve Rowe said that it was a “mixed neighborhood”, with “a weak clothing market in October and in the course of underperformance in our food sales”.

He added: “Our revenues grew both in-store and online during the weeks leading up to Christmas, and we held our full price position in the promotional field and have not participated in Black Friday.

“However, the impact of the unseasonal October resulted in a general drop in revenues.”Analysis: Emma Simpson, business correspondent

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As always, the important the Christmas season has brought a mixed bag of fortune for the retailers.

Tesco is winning on the field today with a decent set of figures. Overall, the food sales have done much better than the food, helped by inflation. Morrisons and Co-op have been notable interpreters. Marks and Spencer, which is still the UK’s biggest clothing retailer, saw sales in the fashion and objects for the home go back again, after the positive results of the previous year. And, while in the food.

Meanwhile, John Lewis reported very good clothing sales, strong numbers for the department store chain. Is firmly in the winners camp, even if the profit margins will take a hit thanks to price matching. And Boohoo, the small but fast-growing online fashion retailer, has seen its turnover double in the last four months, with a growth of the mainstream retailers can only dream of.

What does it mean to all of us? It was a tough Christmas quarter, the general, far from golden. It was tough all the year. There are always winners and losers, but the gap between the strongest and weakest players seem to be getting bigger. And the inexorable rise of the solid line. “Too little, too late’

Bryan Roberts of TCC Global, said a last-minute rush to M&S proved “too little, too late to save the overall time period”.

He added: “the food that many rivals have closed the gap on M&S in terms of innovation and premium ranges, while also putting M&S prices in sharp relief. We would like to see simpler pricing architecture with less reliance on multi-buys.”

In the meantime, Tesco has said that it was “safe” in its full-year outlook following its performance in the Christmas period.

Chief executive Dave Lewis said: “We continued to outperform the market in the course of this period, particularly in fresh foods, thanks to our most competitive offer for many years.”

Natalie Berg, global research director of Planet Retail, told BBC Breakfast that Tesco would never return to its former glory, but he had responded well to its difficulty: “The ship has been consolidated, and they’re doing all the right things.”