Marks & Spencer told a tale of two Christmases when it posted seasonal figures today.
Marks & Spencer told a tale of two Christmases when it posted seasonal figures today - and not just of a contrast between performance in food and general merchandise.
One narrative, played out over the entirety of the third quarter, was a bit of a horror story.
Like-for-likes in the crucial general merchandise division slid 2.1% – a dismal outcome given the hopes resting on the first full range overseen by the newish clothing team.
The abridged story however, running over the eight weeks to Christmas Eve, had more of a fairytale quality. In that telling, general merchandise inched up 0.5% on a like-for-like basis.
But which tells the true story of progress – or the lack of it – at M&S?
Some might say it doesn’t matter because in each case the ending is the same: general merchandise margins were down, some brokers cut forecasts and this year rival Next’s profits will likely be more than M&S’s.
However the difference in performance at M&S in the eight-week period gives some cause for optimism. The retailer flagged dreadful trading in October when the weather was unseasonally warm.
Next’s Christmas update, accompanied by a weekly sales chart, also showed a comparatively tough October although it managed to keep sales up in the main. Nevertheless, it showed M&S was not alone in finding October difficult.
Looked at in that way, M&S’s uptick in November and December – which of course should be expected of any retailer worth its salt – gives hope that the new fashion lines hit the mark more than the previous offering.
M&S’s online business is less developed than Next’s – it is one of that retailer’s greatest strengths – but grew fast over the quarter. M&S will shift to a new platform in the spring, bringing further opportunity to exploit multichannel opportunities.
So while M&S’s Christmas didn’t have the tills ringing as much as was hoped, it could - despite disappointment - be starting the New Year with more spring in its step.
What’s your verdict? Horror story or a more comforting tale?
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