A drop in sales has been reported for Marks and Spencer.
“…Like-for-like sales, which strip out the impact of new stores, fell by 2.8% in the UK between April and June, with total group sales falling 0.7%….” source: BBC
And the beat goes on – struggle for customers and for businesses.
Prices have gone up but not wages.
Consequently, people buy less or are more careful about what and where they buy.
Despite of special offers such as buy one get one free – the popular BOGOF – it hasn’t improved the trend.
A global underperfomance for M&S.
The only positive point is in the food business! Normal afterall…eating is necessary but buying accessories or maybe summer shoes can wait…and the current weather hasn’t helped.
“…While all retailers with seasonal lines are at risk from dramatically unseasonal weather, Marks have suffered more than most…”
To calm everything down, M&S has confirmed that this drop is only within the UK. Other markets outside Britain have performed well ( international sales rising 0.9%). So nothing dramatic as it has been the first fall in annual profits for 3 years in May 2012.
Other retailers are in the same position, but of course it is necessary to address such results to correct the curve.
The next few months should show a better trend….We can only hope.
It is always worrying when there is a drop in the turnover of a company as it could affect a lot of other factors and mainly staff wages or promotions.