Marks & Spencer‘s first quarter of its new fiscal year was weak: lower prices and fewer promotions have taken their toll and turnover dropped as a result
Turnover evolution is disappointing
Between 3 April and 2 July 2016, the British department store chain’s overall turnover dropped 0.9 % compared to the period from 29 March until 27 June 2015. Particularly its clothing division performed badly, with the UK revenue dropping 8.3 % compared to last year. Looking at a like-for-like number of stores, sales even dropped 8.9 %. About a 1,000 items were made cheaper in January and the summer sales were postponed until 5 July, which have had their effect on turnover.
Food sales in the United Kingdom grew 4 %, even though a like-for-like comparison resulted in a 0.9 % drop. The Easter period had something to do with that, while lower prices also had their influence. Sales outside the United Kingdom grew 0.7 % and when exchanged into British pounds, sales even grew 6.1 %.
When Marks & Spencer updates its results in November, it will also update its company strategy.