M&S Report Poor Festive Sales

Consumer retailing giant Marks and Spencer has today announced that it could be in for a difficult year as a result of market difficulties in the UK which led to a poorer than expect Christmas and sale period for the company, prompting calls for an interest rate cut at the Bank of England to stabilise consumer spending.

The famous high street retailer had been thought to be on top form in recent times after brand realignment and a highly successful food marketing campaign, however its overall sales over the festive period were far below expectation, prompting fears that there could be growing problems amongst consumers and consumer confidence in the wake of the credit crunch and ongoing market instabilities.

Sales over the last quarter were down by over 2%, marking its worst quarterly performance for over two years, whilst sales in its major divisions respectively were overall down, including a 1.5% decrease in food sales. The company rounded off the day by suggesting that whilst 2008 would inevitably be a tough year amidst the current climate.

The results today have been seen as particularly embarrassing for the management at Marks and Spencer who have invested heavily in modernising the business in order to bring in a new generation of customer. However, with much of the modernisation process still underway and sales down across all divisions on like-for-like comparisons, it appears that the company may still be someway off guaranteeing longer term success.

Meanwhile executive Sir Stuart Rose today upped his stake in the company by 50%, acquiring an extra £1 million worth of equity following a slump in share prices off the back of the news, suggesting that he, personally at least, has faith in the longer term projections for Marks and Spencer.

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