Britain's struggling retail giant Marks and Spencer this morning admitted that sales over the crucial Christmas period had failed to meet expectations.
However, Steve Costello, General Manager of Irish operations said that Marks and Spencer Ireland had a very buoyant Christmas trading period. He said that the company's four stores in Dublin and Cork performed exceptionally well in all areas including food, clothing and gifts.
He added that overall, the business in Ireland traded very successful throughout 2000.
Just 10 weeks ago Chairman and Chief Executive Luc Vandevelde said he was confident that he could turn the group's negative sales trend into a positive one this Christmas. But total UK retail sales were down 5.1% on a like-for-like basis during the 16 weeks to January 20. General merchandise, which includes clothing, fell 9.6% on an underlying basis, even against weak comparisons.
The UK's biggest clothing retailer has suffered a collapse in sales, with profits falling from a record £1.2 billion in 1998 to 417 million last year. Investors have also had to endure a wave of false dawns.
M&S said lower-than-expected sales had led to excess stock and higher mark-downs over the January sales period. But the company said it had still achieved a significant improvement in profit margins and would go into the spring season with no stock overhang.
The lack of pre-Christmas discounting might mean current year profit forecasts pitched around £485 million can remain steady. The company has been doing plenty to turn its fortunes around, including a pre-Christmas blitz on store revamps, staff incentives, designer ranges and shifting its supply base overseas.
Vandevelde has been at M&S for ten months and has given himself two years to turn the group's fortunes around.
Shares in M&S finished at 200p on Monday for a fall of 35% over the last 12 months, underperforming UK sector peers by 30%. In the whole of Europe only Swedish clothing retailer Hennes & Mauritz, down 45%, has had a more dramatic fall from stock-market grace.
