LONDON (Reuters) – British retailer Marks & Spencer (MKS.L) said strong Christmas sales helped demand for turkey reach a record share of the food market. reported that party wear boosted apparel sales.
For the second year in a row, M&S outperformed the market in both quantity and value of food during the four-week Christmas period, while posting the best in seven years for clothing and home goods, said CEO Stuart Machin. He said that he was gaining share and maintaining market leadership.
“This performance across both businesses gives us confidence to deliver our full-year results,” he said Thursday.
Despite mounting economic pressures on consumers, 2022 was no exception.
The company says it has benefited from increased availability of seasonal products, including turkey meat, and has maintained its leading market share for the third consecutive year.
But the company’s Remarksable Value offer also performed well, he said. Overall, he reported a 6.3% increase in sales of allogeneic food products above expectations.
Clothing and housing sales increased by 8.6%.
The retailer’s strong performance comes as shoppers are determined to spend on Christmas despite inflation hovering at 10.7% and consumer confidence nearing record lows. indicates that
Britain’s largest retailer Tesco (TSCO.L) also reported better-than-expected Christmas sales on Thursday, with similar sales up 7.2% in the six weeks to 7 January.
M&S International sales increased 12.5% on a constant currency basis and delivered strong performances in key franchise markets in the Middle East and owned markets including India in the 13 weeks to 31 December.
However, it remains cautious about the broader economic environment, saying there are “clear macroeconomic headwinds and underlying cost pressures”, but remains confident that full-year results will meet guidance.
The company has already forecast lower earnings in 2022-23 and warned in November that a “storm would gather” of rising costs and pressure on household budgets.
Reported by Paul Sandle.Editing by Kate Holton
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