High street retailer Marks and Spencer has experienced a fall in its Clothing & Home sales as its recovery plan in lowering prices and reducing promotions takes action.
M&S reported Clothing & Home sales were down by 8.3% with like-for-like sales down by 8.9% in a ‘weak market’ for its first quarter trading update in the 13 weeks to 2 July 2016. The group continued to reduce the number of promotions, while also repricing 1,000 lines, with early results promising.
Total group sales registered an uptick of 1.3%, although total UK sales fell by 1.1%, with like-for-like sales down by 4.3%. International sales experienced a growth of 0.7%.
Steve Rowe, chief executive, said: “A key part of our recovery plan for Clothing & Home is lowering prices and reducing promotions. As a result, we ran fewer price promotions while continuing to lower prices to deliver real value to our customers, and moved the summer sale to July. We knew our actions would reduce total sales but we are seeing some encouraging early signs.
“As highlighted in May, consumer confidence weakened in the run up to the EU referendum. While it is too early to quantify the implications of Brexit, we are confident that our strategic priorities and the actions we are taking remain the right ones to deliver results for our customers and our business.”