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M&S sees Christmas food sales fall | M&S sees Christmas food sales fall |
(35 minutes later) | |
Marks and Spencer saw sales fall over the key Christmas period, while Tesco reported record festive trade. | Marks and Spencer saw sales fall over the key Christmas period, while Tesco reported record festive trade. |
M&S said its like-for-like revenues fell 1.4% in the 13 weeks to 30 December. Clothing and homeware fell 2.8%, while food, seen as its most successful sector, was down 0.4%. | M&S said its like-for-like revenues fell 1.4% in the 13 weeks to 30 December. Clothing and homeware fell 2.8%, while food, seen as its most successful sector, was down 0.4%. |
By contrast, Tesco's UK sales rose 2.3% in the 19 weeks to 6 January. | By contrast, Tesco's UK sales rose 2.3% in the 19 weeks to 6 January. |
The supermarket said it saw "record sales and volumes" in the four weeks leading up to Christmas Day. | The supermarket said it saw "record sales and volumes" in the four weeks leading up to Christmas Day. |
The two retailers' trading updates came on a day of big news for the UK's High Street giants that also saw John Lewis release figures for the Christmas period. | The two retailers' trading updates came on a day of big news for the UK's High Street giants that also saw John Lewis release figures for the Christmas period. |
John Lewis said its gross sales for the six weeks to 30 December were up 2.5% on the same period in 2016. | John Lewis said its gross sales for the six weeks to 30 December were up 2.5% on the same period in 2016. |
Waitrose supermarket, which it also owns, reported a 1.4% increase in sales. | Waitrose supermarket, which it also owns, reported a 1.4% increase in sales. |
In other retail news: | |
'Underperformance' | 'Underperformance' |
All three major retailers alluded to difficulties in the market and tough trading conditions, with Tesco speaking of "inflationary pressures" and M&S referring to "ongoing trading pressures". | All three major retailers alluded to difficulties in the market and tough trading conditions, with Tesco speaking of "inflationary pressures" and M&S referring to "ongoing trading pressures". |
Sir Charlie Mayfield, chairman of the John Lewis Partnership, said: "Looking ahead to 2018-19, we expect trading to be volatile due to the economic environment and anticipate that competitive intensity will continue." | |
M&S chief executive Steve Rowe said it had been a "mixed quarter", with "a weak clothing market in October and ongoing underperformance in our food like-for-like sales". | M&S chief executive Steve Rowe said it had been a "mixed quarter", with "a weak clothing market in October and ongoing underperformance in our food like-for-like sales". |
He added: "Our revenue grew both in-store and online over the weeks leading up to Christmas, and we held our full-price stance in a very promotional market and did not participate in Black Friday. | He added: "Our revenue grew both in-store and online over the weeks leading up to Christmas, and we held our full-price stance in a very promotional market and did not participate in Black Friday. |
"However, the impact of an unseasonal October resulted in an overall revenue decline." | "However, the impact of an unseasonal October resulted in an overall revenue decline." |
Bryan Roberts, global insight director at marketing firm TCC Global, said: "While we expect 2018 to finally see some genuine signs of a turnaround in M&S's womenswear business, the trading over Christmas was disappointing. | Bryan Roberts, global insight director at marketing firm TCC Global, said: "While we expect 2018 to finally see some genuine signs of a turnaround in M&S's womenswear business, the trading over Christmas was disappointing. |
"A last-minute rush proved too little, too late to rescue the overall period. | "A last-minute rush proved too little, too late to rescue the overall period. |
"It is within food that many rivals have closed the gap on M&S in terms of innovation and premium ranges, while also putting M&S's prices in sharp relief. We would like to see a simpler pricing architecture with less reliance on multi-buys." | "It is within food that many rivals have closed the gap on M&S in terms of innovation and premium ranges, while also putting M&S's prices in sharp relief. We would like to see a simpler pricing architecture with less reliance on multi-buys." |
'Competitive offer' | 'Competitive offer' |
Meanwhile, Tesco said it was "confident" in its full-year outlook following its performance over Christmas. | Meanwhile, Tesco said it was "confident" in its full-year outlook following its performance over Christmas. |
Chief executive Dave Lewis said: "We have continued to outperform the market throughout this period, particularly in fresh food, thanks to our most competitive offer for many years." | Chief executive Dave Lewis said: "We have continued to outperform the market throughout this period, particularly in fresh food, 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 had responded well to its difficulties. | Natalie Berg, global research director of Planet Retail, told BBC Breakfast that Tesco would never return to its former glory, but had responded well to its difficulties. |
She added: "The ship has been steadied and they're doing all the right things." | She added: "The ship has been steadied and they're doing all the right things." |