M&S bids to halt clothing sales dip
Marks & Spencer's new fashion range faces increased pressure to deliver a turnaround for the beleaguered retailer after it reported an eighth successive quarter of falling like-for-like sales in its clothing division.
The autumn/winter collection, which will begin to arrive in stores from the end of this month, is being seen as a key test of the store's top fashion team after a major revamp last year amid an alarming decline in revenues.
Figures showed the decline continued with a like-for-like slump of 1.6% in general merchandise sales in the 13 weeks to the end of June, though total sales were slightly up, by 0.5%.
Chief executive Marc Bolland insisted that there were signs of improvement, but comparisons were up against a dire performance in the period last year when like-for-like sales slipped 6.8%.
Analysts Conlumino said this suggested the latest progress was "extremely limited" and that while M&S seemed to be pinning its hopes on the new fashion range, problems could run deeper.
Ahead of the chain's annual general meeting at Wembley Stadium, Mr Bolland insisted his recovery plan is on track. Tuesday's trading update showed an overall like-for-like sales improvement of 0.3%, after growth in the food division of 1.8% offset the decline in general merchandise. Total food sales were up 4.5%.
Mr Bolland said: "Our general merchandise business showed some improvement this quarter and the food business delivered another excellent performance."
Total UK sales increased 2.7% with group sales up 3.3%, helped by international performance, where takings were ahead 8.7%. Online sales were up strongly too, by 29.9%, reflecting management plans to transform the business into what it describes as an "international, multi-channel retailer".
Conlumino said while M&S was "pinning its hopes on next quarter" and a step-change in the product range, there were still concerns about lacklustre stores that put off "younger and young-at-heart consumers" even though the latest collection contained some compelling offerings.
"The big issue for M&S is that while this looks good on paper, within the store environment collections lose their creative integrity and become subsumed by a sea of merchandise," the analysts said.
