M&S reports profit fall for third year running

Marks & Spencer has recorded a profit fall for the third year running, with underlying profit before tax down by 3.9% to £623m.

Marks & Spencer: summer 2014 campaign
Marks & Spencer: summer 2014 campaign

Total group like-for-like sales grew by 0.2%, which is made up of a 1.7% growth in like-for-like food sales and a 1.4% drop in like-for-like general merchandise sales.

The retailer said its priority over the past year in the UK has been to ensure that it offers an improved shopping experience to its 20 million strong customer base each week, and that this plan is now in its second phase.

Marks & Spencer said its strategy, introduced in May 2013 to deliver "quality and style" with upgraded fabrics, streamlined sub brands and the launch of the M&S collection, supported by its Leading Ladies campaign, helped to "return the general merchandise division to growth in the fourth quarter for the first time in three years". 

The brand introduced its long-awaited new site this year and said its online sales had risen by 23% in the past year. "As customer shopping habits continue to evolve" its mobile sales have increased by 90%.

M&S said the new site will still take another four to six months to "settle in".

Chief executive Marc Bolland told BBC Radio 4's Today programme that M&S has made "solid progress".

He said: "General merchandise is not yet satisfactory. But a lot of the heavy lifting has been done," adding that since he took the helm three years ago, there has been heavy investment in the retailer to make it "fit for purpose".

"We are improving step by step," he said.

Topics

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
YouTube to stop 30-second unskippable ads
Shares0
Share

1 YouTube to stop 30-second unskippable ads

Starting next year, YouTube will stop allowing the 30-second unskippable ad and will focus instead on shorter formats.

Just published

More