Marks & Spencer has indicated that it plans to cut prices in an attempt to entice cash-strapped customers following a disappointing showing over Christmas.
In its latest trading update, the retail chain revealed it had endured a 1.8 per cent decline in like-for-like merchandise sales in the 13 weeks to December 31, with sales in its home division slumping by 13.3 per cent. However, clothing sales registered an increase of 1.1 per cent over the period.
“In clothing, our focus was on offering our customers real value at a time when they're managing their budgets carefully,” said M&S chief executive Marc Bolland. “Our trading strategy worked well, delivering a record performance in many categories including menswear and sleepwear.”
Food sales were up 4.5 per cent, boosted by the introduction of hundreds of new lines and increased demand for products over the festive season. Online sales also enjoyed significant growth, rising by 22.4 per cent as consumers took advantage of M&S’ extended next-day delivery service.
Last week, rival Waitrose announced it had seen its strongest-ever weekly sales figure in the seven days to Christmas.
