Second quarter like-for-like (LFL) sales took a tumble at High Street giant Marks and Spencer, though the food business held up well, and full year guidance remains unchanged.
Group sales in the 13 weeks to June 30th were down 0.7% on the corresponding period of the previous year. Total UK sales were down 0.9% year-on-year with food sales up 2.9% and general merchandise (GM) sales down 5.1%.
LFL sales in the UK were down 2.8%, with food sales up 0.6% and GM sales down 6.8%.
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International sales were up 0.9% on the April-June quarter of 2011. What the group calls multi-channel sales - such as Internet shopping - saw a 14.9% uplift in sales.
"General Merchandise underperformed in a difficult trading season. We are confident we are taking the necessary steps to address this," said Marc Bolland, the Chief Executive of Marks & Spencer (M&S).
These steps include a shake-up of the senior management team, with Kate Bostock, the Executive Director of General Merchandise, leaving M&S "by mutual consent", on 1st October 2012.
John Dixon, Executive Director for Food, will take over as Executive Director of GM from Bostock. Belinda Earl, formerly the Chief Executive Officer of Debenhams, will join the company on September 1st as Style Director, reporting to Dixon.
Steve Rowe, currently Director of Retail, will take on Dixon's current role of Executive Director of Food and will join the M&S board on October 1st.
The clothing market continued to be driven by promotions throughout the quarter, especially in womenswear, in part due to the miserable weather.
While the clothing market was soggy, the company said its key departments of kitchens, bedrooms and bathrooms delivered a positive performance. Other sales continue to be affected by M&S's decision to withdraw from technology as well as weak demand for big ticket items.
The new store concept is still being rolled out, with the project on schedule and within budget.
"While we expect the short term trading outlook to continue to be challenging, we are making strong progress against our goal of becoming an international, multi-channel retailer," the group said.
JH
