Marks and Spencer’s has warned that sales this year are likely to be no better than in its financial year just ended, as trading conditions remain tough for clothing retailers. Also, its efforts to revive its general merchandise business will take time.
Trader’s Remarks: M&S intends to focus on lowering prices and reducing the number of sales and promotions. It will also improve the style, fit and quality of its clothing lines to satisfy its customers. The strategy seems evolutionary rather than revolutionary and highlights the challenges faced by UK retailers since the beginning of this year. Cleary there are no secret formulas for success in this challenging sector.
What to watch: M&S, Next, Inditex, H&M