Jump to content
House Price Crash Forum
Sancho Panza

M&s Suffers Disastrous Christmas

Recommended Posts

Telegraph 8/1/15

'Marks & Spencer suffered a terrible Christmas as shoppers continued to reject its fashion ranges, piling pressure on chief executive Marc Bolland.

Total group sales for the 13 weeks to 27 December were down 1.6pc, driven by an accelerating decline in general merchandise.

The division, which includes all non-food sales, reported a plummet in like-for-like sales of 5.8pc, despite "positive customer feedback" on M&S's key womenswear ranges.

M&S shares were down nearly 2.5pc in early trading on Thursday.

Mr Bolland partly blamed the performance, which represented almost twice the decline in general merchandise expected by City analysts, on warm weather in October and November. It was the 14th consecutive quarter - three and a half years - of sales decline for the division.

M&S said it deliberately resisted the discounting trends led by rivals in December in order to maintain its gross margins.

The chief executive also admitted an “unsatisfactory performance” by the M&S.com warehouse in the run up to Christmas.

Failures at the distribution centre in Castle Donington, Leicestershire, continued to drive down general merchandise sales through online channels in December, he said. There were delays in home deliveries and the company suspended click-and-collect orders at times.

Food sales, which have been the bright spot for M&S in recent years, were up just 0.1pc on a like-for-like basis. Analysts had expected a 0.9pc improvement.

Mr Bolland said M&S had a “very good Christmas” in food, however. The results could have been worse for M&S, but for record food sales in Christmas week, up 17pc.

He said: “We delivered record Christmas sales, strongly outperforming the market.

“We had a difficult quarter in general merchandise, dominated by unseasonal conditions and an unsatisfactory performance in our e-commerce distribution centre. We maintained our focus on general merchandise gross margin, with guidance unchanged.”

The picture was also grim for M&S’s international business, where growth has been a strategic priority for the group under Mr Bolland. It reported a 5.8pc fall in sales on a constant currency basis. Taking the strength of sterling into account international sales were down 8.8pc, amid the crisis in Russia and macro-economic issues in the Middle East.'

Share this post


Link to post
Share on other sites

....also growth is numbers of people, are there more people that need more stuff...do people need to travel to the UK to stock up with clothes from M&S when they can now buy that and more in the places they live.

Share this post


Link to post
Share on other sites

I was impressed by their clothes range this autumn.

Unfortunately, I would never be impressed enough to pay the prices they were asking.

Perhaps the prices I saw were the fictional price points set to allow for the inevitable 'SALE' discount.

However, the prices were high enough to make sure I didn't bother visiting their store again.

The winter coat I bought 12 years ago can carry on.

Edited by LiveinHope

Share this post


Link to post
Share on other sites

I was impressed by their clothes range this autumn.

Unfortunately, I would never be impressed enough to pay the prices they were asking.

Perhaps the prices I saw were the fictional price points set to allow for the inevitable 'SALE' discount.

However, the prices were high enough to make sure I didn't bother visiting their store again.

The winter coat I bought 12 years ago can carry on.

Indeed things like coats can last years. Can't understand why women, in particular, just want to keep shopping for clothes. My partner does it, but then she takes most of it back, so it's on a budget really. Nevertheless, she spends hours a week sorting and buying clothes. Got to say when I see women packing the aisles I am a bit cynical, but then I waste my time on HPC...partner can't understand that.

The amount of money and time spent on clothes is totally disproportionate to its importance.

Share this post


Link to post
Share on other sites

Mr Bolland partly blamed the performance on warm weather in October and November. :unsure:

You can't have a high street retailer like-for-like sales decline announcement without a meteorological element.

Cloud cover unfavourable this quarter.

Share this post


Link to post
Share on other sites

Indeed things like coats can last years. Can't understand why women, in particular, just want to keep shopping for clothes. My partner does it, but then she takes most of it back, so it's on a budget really. Nevertheless, she spends hours a week sorting and buying clothes. Got to say when I see women packing the aisles I am a bit cynical, but then I waste my time on HPC...partner can't understand that.

The amount of money and time spent on clothes is totally disproportionate to its importance.

I blame the weather

Share this post


Link to post
Share on other sites
M&S said it deliberately resisted the discounting trends led by rivals in December in order to maintain its gross margins.

So your competitors hold sales and you arrogantly do not - must think their customers are mugs.

Having said that, wished I had bought some M&S shares back in the Spring - they shot up seemingly for no reason last year.

Share this post


Link to post
Share on other sites

How many pairs of shoes and coats does one person need?

Shoes? Shoes? Don't get me started on bloody shoes!!!! We have two boxes supplied by the removals company we used last year, and they are literally FULL of little black shoes.... and who needs five pairs of jogging shoes ffs!

I have two pairs of shoes, a pair of wellies and two pairs of boots. One for hill-walking, the other for motorcycling. At a rough estimate, I would guess my other half has > 100 pairs of various shoes.

Having said that, she earns more than I, and can spend her money on anything she damn well wants. She assured me that the M&S sale after Xmas was very good btw, much 'cheapness'....

Back ot, M&S are relying on a (literally!) dying clientèle as far as I can see. They need to get the 30-40 age group through their doors again, and that group simply does not have the disposable income that the previous generation had.

In the end, it all comes down to high housing costs, doesn't it....

Share this post


Link to post
Share on other sites

Shoes? Shoes? Don't get me started on bloody shoes!!!! We have two boxes supplied by the removals company we used last year, and they are literally FULL of little black shoes.... and who needs five pairs of jogging shoes ffs!

I have two pairs of shoes, a pair of wellies and two pairs of boots. One for hill-walking, the other for motorcycling. At a rough estimate, I would guess my other half has > 100 pairs of various shoes.

Having said that, she earns more than I, and can spend her money on anything she damn well wants. She assured me that the M&S sale after Xmas was very good btw, much 'cheapness'....

Back ot, M&S are relying on a (literally!) dying clientèle as far as I can see. They need to get the 30-40 age group through their doors again, and that group simply does not have the disposable income that the previous generation had.

In the end, it all comes down to high housing costs, doesn't it....

Your should develop a foot fetish.

Share this post


Link to post
Share on other sites

How many pairs of shoes and coats does one person need?

Ever noticed in a Charity shop....100 pairs of shoes in the Women's section, most unworn. Two pairs of shoes in the Men's section, both knackered with holes in.

Good job someone is buying stuff to keep the economy going and not wearing it.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

Down 1.6% over a quarter, "disastrous" is a bit like the Express garbage.

Note that the week before Christmas food sales were up 17% like for like which was likely the result of heavy discounting which is bad for profits.It covered up the 5.8% drop in non food like for like which contributes 45% of turnover.

So your competitors hold sales and you arrogantly do not - must think their customers are mugs.

Quite.The non food drop is one hell of a hit.

Back ot, M&S are relying on a (literally!) dying clientèle as far as I can see. They need to get the 30-40 age group through their doors again, and that group simply does not have the disposable income that the previous generation had.

In the end, it all comes down to high housing costs, doesn't it....

Spot on.Same as Waitrose.Things are rosy for them now but the writings on the wall down the line unless they can engage with a different demographic.

Share this post


Link to post
Share on other sites

I don't really understand M&S food shops. Tesco quality at Waitrose prices.

Before xmas I was in (trying to finish off a gift voucher), they had packaged cold cooked meats. One was a selection of salami type stuff, 4 different types. 100g cut very thin and spread as wide as possible across a 12 inch plus plastic tray. £20. That's £200 per kg. And it didnt look at all interesing or special or luxurious.

Share this post


Link to post
Share on other sites

I don't really understand M&S food shops. Tesco quality at Waitrose prices.

Before xmas I was in (trying to finish off a gift voucher), they had packaged cold cooked meats. One was a selection of salami type stuff, 4 different types. 100g cut very thin and spread as wide as possible across a 12 inch plus plastic tray. £20. That's £200 per kg. And it didnt look at all interesing or special or luxurious.

Some people can't handle shopping with the plebs.

Share this post


Link to post
Share on other sites

I don't really understand M&S food shops. Tesco quality at Waitrose prices.

Supermarket quality at Waitrose prices seems to work fine for Waitrose. I have noticed Waitrose own brand marmalade is 1p cheaper in Canary Wharf than Tesco brand marmalade is in Northampton though!

As for M&S - went in there with SWMBO to buy the father in law a jumper for Christmas. I was in attendance as jumper model. They had perhaps 100 pure wool V-necks laid out covering maybe 6 different colours. Neither of the colours we wanted were available in XL though - several S/M and a few L, so our money was spent in BHS instead. I frequently see this in M&S, their size ordering is atrocious.

Edited by disenfranchised

Share this post


Link to post
Share on other sites

Ever noticed in a Charity shop....100 pairs of shoes in the Women's section, most unworn. Two pairs of shoes in the Men's section, both knackered with holes in.

Good job someone is buying stuff to keep the economy going and not wearing it.

Yes, many people benefit from others bad shopping mistakes and impulse buying.....lots of peruna clothing in the CSs, was it last year they were trying to remove secondhand M&S clothing from the market by asking people to take their old clothes back to M&S rather that give them away to others. Edited by winkie

Share this post


Link to post
Share on other sites

M&S sell some good cheese (compared to ASDA and LIDL). It's the only place I can find a good bit of Lancashire & cheshire, the Cornish Cheddar is nice too.

[edit[ The Walnut Whips & Crisps are good too.

Edited by Wurzel Of Highbridge

Share this post


Link to post
Share on other sites

I don't really understand M&S food shops. Tesco quality at Waitrose prices.

Before xmas I was in (trying to finish off a gift voucher), they had packaged cold cooked meats. One was a selection of salami type stuff, 4 different types. 100g cut very thin and spread as wide as possible across a 12 inch plus plastic tray. £20. That's £200 per kg. And it didnt look at all interesing or special or luxurious.

89p off the deli counter in morrisons.

Don't ever say you want it cut really really really thin though cos they will and it'll take ages.

Share this post


Link to post
Share on other sites

I think M&S is a bit like the BBC. They had a huge share when there weren't many channels. It is decline in share ever since.

I often wonder how European high streets support all these chains . . . Zara, Tally Weijl, H&M, Intimissimi, so on . . . from Aachen to Zagreb. And despite the branding, the stuff isn't wonderful is it . . .

'What do you think, darling? Should I take the Chinese viscose or the Bangladeshi polyester?'

C&A got out of many markets years ago. Their stuff was reasonable quality, if slightly conservative . . . but I don't know if anyone wants that these days . . . (apart from in Germany, where there are still C&A stores.)

For me, M&S does not have a fashion image and I think it can't really support its premium price strategy . . . it has become very expensive. (And yeah, the food hall is just silly.)

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.