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Marks and Spencer sales hit by website move | Marks and Spencer sales hit by website move |
(35 minutes later) | |
Marks and Spencer has reported a big drop in online sales after its move to a new website platform hit trading. | Marks and Spencer has reported a big drop in online sales after its move to a new website platform hit trading. |
Sales at M&S.com were down 8.1% in the 13 weeks to 28 June, with M&S chief executive Marc Bolland admitting the new site had "an impact on sales". | |
Like-for-like sales of non-food products, including clothing and homewares, fell 1.5% in the quarter. | Like-for-like sales of non-food products, including clothing and homewares, fell 1.5% in the quarter. |
However, the fall was offset by continued growth in M&S's food sales, which increased 1.7%. | However, the fall was offset by continued growth in M&S's food sales, which increased 1.7%. |
The new website intended to transform the 130-year-old business but has faced obstacles since its launch in February. | The new website intended to transform the 130-year-old business but has faced obstacles since its launch in February. |
All six million customers registered on the old site were forced to reregister, and there have been reports of problems with site navigation. | All six million customers registered on the old site were forced to reregister, and there have been reports of problems with site navigation. |
Laura Wade-Gery, who was head of M&S's online business, was elevated just one week ago to oversee M&S's UK stores and some are tipping her to, one day, take over from Mr Bolland. | |
'Old tale' | 'Old tale' |
Mr Bolland blamed teething problems with the website for the fall in general merchandise sales. The latest results mark the 12th quarter in a row that sales at M&S's homeware and clothing division have fallen. | |
The retailer said sales of womenswear increased during the quarter, but like-for-like clothing sales overall were down by 0.6%. | The retailer said sales of womenswear increased during the quarter, but like-for-like clothing sales overall were down by 0.6%. |
Mr Bolland said: "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales. | Mr Bolland said: "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales. |
"We are pleased that the womenswear business was in growth, driven by full price sales, in line with our increased focus on margin. | "We are pleased that the womenswear business was in growth, driven by full price sales, in line with our increased focus on margin. |
"Our food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation." | "Our food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation." |
Neil Saunders, managing director at retail analysts Conlumino, said: "The latest update from Marks and Spencer tells an old tale: that the strategy on clothing will deliver results if only it is given more time. | Neil Saunders, managing director at retail analysts Conlumino, said: "The latest update from Marks and Spencer tells an old tale: that the strategy on clothing will deliver results if only it is given more time. |
"There may well be some merit in this story, but it is one that can only be spun for so long before it becomes incredulous." | "There may well be some merit in this story, but it is one that can only be spun for so long before it becomes incredulous." |
'Work in progress' | |
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said: "Against a backdrop of low expectation, M&S appears to have offered some hope. | Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said: "Against a backdrop of low expectation, M&S appears to have offered some hope. |
"For now, M&S remains a work in progress. The group's offering continues to be honed, food sales are expanding, bolstered by the roll-out of new Simply Food stores, whilst the strength of the group's brand name and the still attractive dividend yield cannot be forgotten." | |
The figures were announced hours before Mr Bolland and the rest of the board are due to face shareholders at M&S's annual meeting at Wembley Stadium. | The figures were announced hours before Mr Bolland and the rest of the board are due to face shareholders at M&S's annual meeting at Wembley Stadium. |