M&S sales up for new boss
MARKS and Spencer’s new chief executive Marc Bolland yesterday warned that he was “very cautious” about the economic environment in the UK.
Presenting M&S’s third consecutive quarter of sales rises, he said: “We know that consumers were concerned to see the measure of VAT being taken to 20 per cent but we will not see the impact now, but in a period of time we will get more clarity on that.”
More optimistically, though, Bolland did say he did not foresee a slump back into recession.
The company said sales at British stores open at least a year rose 3.6 per cent in the 13 weeks to 3 July.
That was toward the top end of forecasts and boosted by a strong performance in clothing, though it was down from a 5.1 per cent rise in the previous quarter.
But Bolland, who has spent the past nine weeks settling in to his new role at the retail giant, urged caution, saying the impact of the budget, including a VAT hike, could not yet be assessed.
M&S launched 570 new products including grill and summer dessert ranges, in its food ranges over the period.
Like-for-like general merchandise sales, which include clothing and homewares, were up six per cent. Meanwhile international sales were up 0.9 per cent.
Bolland, who has replaced Sir Stuart Rose at the helm of the company, is due to give a full report on his plans for the retailer in November. M&S has 650 UK stores. M&S shares closed down 9p at 343.40p.