M&S clothing revival proves short-lived as sales slip
The sales lift M&S’ marketing seemed to give its clothing sales earlier this year appears to be short lived after sales of its non-food products slipped in its latest quarter.
This saw general merchandise sales at the High Street retailer fall 0.4 per cent over the 13 weeks to 27 June, somewhat better than a consensus forecast for a 1 per cent decline.
Fears are now being expressed that a seeming turnaround in its clothing sales in the previous three months may turn out to be little more than a blip although the firm did increase its general merchandise gross margins of between 1.5 and 2 per cent.
A recent marketing blitz by M&S had been thought to have been making some success as the retailer went out all guns blazing to push an 'iconic' suede skirt, worn by the likes of Alexa Chung and Olivia Palermo during key Fashion Week events as well as upped its digital spend. Despite the setback, the retailer continues to back its marketing to reverse the dip with several initiatives currently underway including greater personalisation to boost online sales and more contextual promotions to mobile devices.
John Ibbotson of the retail consultants, Retail Vision, said: "As hard as it is to stomach, the one-time colossus of British retailing is now an also ran, with the likes of Next, Primark and the internet operators ripping away its clothing market share.
"It’s make or break time for M&S. No amount of restructuring and transformation of IT and logistics will be enough if clothing sales don’t improve soon.”
M&S’s food business continues to perform well however, notching up its 23rd quarterly rise in like-for-like sales of 0.3 per cent.