M&S attributes strategic reduction in promotions to drive stronger sales during the holiday season
M&S's strategic decision to reduce promotions in clothing and home has yielded impressive results with a 48% surge in sales, reaching £123bn during the festive season
Marks & Spencer's investment in clothing and home is yielding positive results, with strong sales reported across the Christmas period.
Sales for clothing and home increased by 4.8% to £1.23bn over the 13-week festive period, and by 4.8% on a like-for-like basis.
M&S attributes this performance to an increase in average selling price due to a decrease in promotions. Stock reduced by 6% during sales, with efforts to limit clearance sales. CEO Stuart Machin notes, "We achieved strong results in clothing and home, with sales outpacing the market and reduced stock in clearance sales. Womenswear particularly stood out, showing significant growth in volume and value."
M&S attributes the significant growth in online sales to the improved customer perceptions of style, quality, and value in its womenswear range. Anna Braithwaite, the marketing director for clothing and home at M&S, acknowledged that the brand had "lost its way" in terms of style and emphasized the importance of finding the right balance between style, quality, and value for future growth. This initiative was further supported by enlisting actress Sienna Miller to enhance brand perceptions.
"We were completely directionless. The journey of the brand, product, value, and quality has been incredibly challenging," she stated.
In the UK, sales across food, clothing, and home increased by 8.5% to £3.56bn, up 8.1% on a like-for-like basis.
Food sales surged by 10.5% to £2.33 billion, with like-for-like sales increasing by 9.9%. Notably, the 'Remarksable' value range displayed strong growth of 18%, indicating continued investment in the brand's value proposition.
According to M&S CEO Machin, the results reflect the success of the company's strategy to "reshape M&S for growth", resulting in sustained sales momentum in both the food and clothing/home sectors. Machin attributes this success to the company's "commitment to trusted value – unbeatable M&S quality at the best possible price".
He asserts that an increasing number of customers are turning to M&S for a complete shopping experience, noting that the clothing and home division has shown significant growth ahead of the market, resulting in an increase in full-price sales and the highest full-price market share in over ten years.
Additionally, he states: "We are committed to achieving our goal of increasing market share by 1% in both sectors and accelerating our transformation efforts. This includes maintaining a strong focus on delivering trusted value, expediting our store rotation and renewal plans, intensifying our supply chain initiatives to enhance availability and reduce costs, and redefining our data, digital, and technology strategy to unlock future benefits."
