M&S; and Debenhams report rise in Christmas sales
British retailer Marks & Spencer has announced that its group sales, excluding VAT, in the 13 weeks to December 31 were up 2.4pc.
Discounts helped to attract shoppers over the Christmas season but M&S said it expects trading conditions to remain challenging and it will making additional cost savings to offset a fall in profit margins due to the discounting.
Meanwhile department store Debenhams said that its group like-for-like sales in the 18 weeks to January 7 rose by 1.4pc as the warmer weather in October and November impacted the sale of seasonal product lines.
Sales in December were stronger with sales growth of 6.5pc reported.
The company said it was pleased with the “good performance” given the difficult trading conditions and that uncertainty in the wider economy continues to have an adverse impact on consumer confidence.
“We are cautious about the strength of the economy and its impact on consumer behaviour over the remainder of the financial year. We will continue to manage the business tightly with an ongoing emphasis on cost and margin management,” said chief executive Michael Sharp.
Karina Corbett