09-01-2008
M&S sales figures offer insight into consumer spending
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Festive sales figures for Marks and Spencer (M&S) may increase sentiment that consumer spending in the UK is entering a period of slower growth.
Over the Christmas period - a significant time of the year for M&S - sales of food fell at a rate of 1.5 per cent. M&S, a firm with a history going back to 1884, has confirmed a belief that over the course of the year, conditions will remain difficult.
"We are concerned that this soft performance has been delivered despite huge cash investment in the stores, a considerable advertising campaign and strong trading momentum over the last two years," said Andrew Wade, an analyst at Seymour Wade.
Over the same period, M&S confirmed a decline in homeware and clothing sales weakened by 3.2 per cent. The news has resulted in a reduction of 19 per cent in the value of shares for M&S.
