Login

Marks & Spencer general merchandise sales suffer in Q3 on delivery issues, warm autumn

UK retail giant Marks & Spencer Thursday reported a fall in Q3 sales as its general merchandise performance continued to disappoint, blaming online delivery problems and unseasonal weather.

The general merchandise division, which includes fashion and homewares, saw same-store sales dip a bigger-than-expected 5.8% in the 13-week Q3 to December 27. It said its clothing sector performance was impacted by unseasonal conditions in October and November.

However, M&S noted it had received “positive customer feedback” on its autumn/winter womenswear ranges.

But the general merchandise figures are the worst since the start of the 2012/13 financial year and extend the run of declines in the division to a 14th quarter.

Total group sales fell 1.6% with UK sales down 1.1% and international sales were 5.8% lower.

“We had a difficult [third] quarter in general merchandise, dominated by unseasonal conditions and an unsatisfactory performance in our e-commerce distribution centre,” said chief executive Marc Bolland.

M&S noted it deliberately held back the level of discounting, especially in December, adversely impacting sales, but improving gross margin.

Marks & Spencer broadly reiterated its full-year guidance.

Know what’s next. Become a WGSN member today to benefit from our daily trend intelligence, retail analytics, consumer insights and bespoke consultancy services.

WGSN Insider Bulletin

Big data meets consumer insights. Experience WGSN.

Related Stories

UK Mother's day retail sales boost

March Mother's Day was a retail hit with UK shoppers

Boohoo Man tailoring options available now

Boohoo Man upgrades its affordable menswear tailoring options

Charlotte Russe womenswear clothes are a hit

Fact: US Millennials love fashion label Charlotte Russe

Share
Tweet
+1
Share
Pin