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| M&S hit by poor Christmas sales | M&S hit by poor Christmas sales |
| (10 minutes later) | |
| Retailing giant Marks and Spencer has reported a fall in sales over the key Christmas trading period, adding to signs of slower UK consumer spending. | Retailing giant Marks and Spencer has reported a fall in sales over the key Christmas trading period, adding to signs of slower UK consumer spending. |
| UK like-for-like sales fell 2.2% in the last three months of 2007, M&S said. Sales of clothes and homeware declined 3.2%, while food sales dropped 1.5%. | UK like-for-like sales fell 2.2% in the last three months of 2007, M&S said. Sales of clothes and homeware declined 3.2%, while food sales dropped 1.5%. |
| It was the company's worst performance for more than two years, and M&S shares slumped 17% to 420 pence on the news. | It was the company's worst performance for more than two years, and M&S shares slumped 17% to 420 pence on the news. |
| M&S said trading conditions would remain tough in 2008. | M&S said trading conditions would remain tough in 2008. |
| Slowdown | Slowdown |
| Other retailers have also been hit over Christmas as consumers pull back their spending. | Other retailers have also been hit over Christmas as consumers pull back their spending. |
| The High Street boom is over Robert Peston, BBC business editor Read Robert Peston's blogSee M&S share price | |
| On Monday, the British Retail Consortium said UK retailers had seen the slowest sales growth in December for three years, with sales up by just 0.3% year-on-year. | On Monday, the British Retail Consortium said UK retailers had seen the slowest sales growth in December for three years, with sales up by just 0.3% year-on-year. |
| Talking to the BBC, M&S chief executive Sir Stuart Rose said the UK High Street "has definitely slowed up" and conditions in the clothing market were tougher than they had been for 10 years. | Talking to the BBC, M&S chief executive Sir Stuart Rose said the UK High Street "has definitely slowed up" and conditions in the clothing market were tougher than they had been for 10 years. |
| But he said that unlike other shops, M&S had not discounted heavily to shift its stock. | But he said that unlike other shops, M&S had not discounted heavily to shift its stock. |
| "We did not discount in the run-up to Christmas," Sir Stuart said. "Stock levels were well controlled over the period. We had a strong start to the Christmas Sale and sale stocks have now cleared." | "We did not discount in the run-up to Christmas," Sir Stuart said. "Stock levels were well controlled over the period. We had a strong start to the Christmas Sale and sale stocks have now cleared." |
| Website sales were particularly strong, adding 78% during the quarter. And in contrast to its poor results at home, M&S's international sales rose 15.1%. | Website sales were particularly strong, adding 78% during the quarter. And in contrast to its poor results at home, M&S's international sales rose 15.1%. |
| At the same time, certain sectors like food had improved their outlook. | At the same time, certain sectors like food had improved their outlook. |
| Looking ahead, the firm said its plan to update its stores had been applied to 70% of its shops adding that a "strong pipeline of new space for 2008 and beyond" was planned. | Looking ahead, the firm said its plan to update its stores had been applied to 70% of its shops adding that a "strong pipeline of new space for 2008 and beyond" was planned. |