New stores boost M&S food sales
considerably by the roll out of its Simply Food format during the
period, the company has announced. Meanwhile, troubled retailer
Ahold has confirmed that information about its future strategy will
be delayed for several weeks.
The continued roll out of the Simply Food format by the UK's Marks & Spencer group has helped the company increase sales in the second quarter of 2003, according to a trading statement issued today.
The Simply Food stores, a joint venture with the Compass Group and focused on major railway stations, have proved to be a phenomenal success, helping M&S lift food sales by 5.4 per cent during the three-month period to 27 September. Like-for-like sales during the same period were a more modest 1.6 per cent.
For the fist six months of the year, food sales were up 6.9 per cent or 3.4 per cent on a like-for-like basis.
Total group sales for the quarter were up 2.6 per cent, with food by far the best performer. Clothing and footwear sales were up just 0.9 per cent, mainly as a result of the company putting 10 per cent less stock into its summer sales and the hot summer weather, while home and gift sales were down 1.7 per cent, mainly as a result of the company repositioning its furniture business.
For the half as a whole, the performance was somewhat better, with clothing sales ahead 2.5 per cent and home sales edging slightly higher at 0.1 per cent, contributing to a 4.2 per cent gain for the company as a whole (2.4 per cent on a like-for-like basis).
Ahold strategy presentation delayed
Meanwhile, Dutch food retail group Ahold has said that it will delay the publication of its long-awaited strategy document for several weeks, a move which will do little to restore confidence in the embattled company.
Anders Moberg, new chief executive of Ahold, had been expected to reveal his plans for getting the retailer back on track at the shareholders' meeting later this month, but the strategy document will now not be made public until 7 November, when the company publishes its first half results.
The delay has been entailed by the need to concentrate on preparing the revised 2002 results, finally released last week. These revealed a massive €1 billion loss - which will increase when US accounting standards are applied - and investors are keen to see how Moberg plans to reduce this figure in the years to come.
"Preparing the next sets of financial data will require sufficient time to ensure that they are completed with the degree of thoroughness and precision expected by shareholders. We recognise that some of the dates may differ from those suggested at the presentation of our 2002 results on 2 October. However, the timetable we've proposed is both reasonable and achievable, and in the interests of all our shareholders," said Hannu Ryöppönen, Ahold's chief financial officer.
A trading update will be given on 28 October, while third quarter results will be published at the company's AGM on 26 November.
