Marks & Spencer weathers Christmas snow storms
January 12, 2011
Marks & Spencer delivered some of the retail sectors most robust sales this Christmas, despite most high street retailers suffering from the severe weather.
Although the retailer admitted losing nearly £55m in sales due to the snow, it finished off a great year with strong like-for-like sales growth. As VAT rises went into place last week and job cuts began to impact average spending rates, the retailer posted a 2.8 per cent rise in its UK sales. Its sales growth surpassed City estimates for 2010.
Coming in behind M&S was privately owned retailer John Lewis, who also managed to weather the UK wintry storms and post a rise in sales for Christmas trading.
Altium Securities’ Philip Dorgan said that the numbers prove that M&S can cope extremely well in difficult trading conditions. Several retailers, including maternity specialists Mothercare blamed their recent profit warnings on the snow.
Marc Bolland, chief executive of M&S, said customers continue to look to the well-established brand name of the retailer. M&S increased its general merchandise in the UK by 3.8 per cent, while delivering growth in all areas of its expertise.
In food, M&S posted a 1.8 per cent increase in its underlying UK sales. Mr Bolland said that the retailer’s customers had responded well to its recent addition of 600 new items.
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