Marks and Spencer recovery boosted by online sales
after reporting third quarter like for like sales up 5.6 per cent
today, boosted by online sales.
Marks and Spencer's recovery plan has been successful, like for like food sales are up 3.6 per cent and general merchandise sales up 7.1 per cent. The supermarket reports that food revenues are up by as much as 9.5 per cent and general merchandise up by 9.0 per cent.
"We have now delivered growth on growth in all area's of our business, thus completing the first part of our recovery plan. We remain on track to further drive and broaden our business," said Stuart Rose, Chief Executive of Marks and Spencer.
Marks and Spencers positive results were aided by a rise of 70 per cent in online sales, receiving over nine million customers visiting the site over the period. The business continued to improve internationally too, with sales up 18.2 per cent over the period.
Marks and Spencer says its food divisions success is due to a concentration on products aimed at meeting the demand for healthier foods, having marketed 30 per cent of its food products under the 'eat well' logo.
CEO Rose said that Marks and Spencer would press on with its recovery program this year.
"This quarter will be impacted by the next phase of our store modernization program, which starts earlier than last year. We plan to have over 70 per cent of our store space in the new format by Christmas 2007," he said.
However Rose warned that during the fourth quarter the supermarket would face tougher year on year comparatives in the traditionally tough post Christmas retail environment.
