Discount detox

12 January 2017 By Carol Ryan

Strong sales at Marks & Spencer and Debenhams show efforts to wean customers off promotions are bearing fruit. More full-priced sales mean better margins. But the temptation to hoist the “sale” signs may return as inflation and weaker growth squeeze UK consumers.

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British retailer Marks & Spencer said on Jan. 12 that sales increased by 4.3 percent at constant currency in the 13 weeks to Dec. 31.

Like-for-like sales of its clothing and home goods increased by 2.3 percent in the period. Chief Executive Steve Rowe said stock on sale during the third quarter declined by around 7 percent, with one less clearance event than last year.

Supermarket Tesco on Jan. 12 reported group like-for-like sales growth of 1.5 percent in the 13 weeks to Nov. 26, with UK sales up 1.8 percent. UK sales of the supermarket’s clothing offering grew 4.3 percent over the Christmas period.

Department store Debenhams said UK like-for-like sales in the 18 weeks to Jan. 7 increased by 1 percent.

M&S’s share price was flat by 1045 GMT while Debenhams shares were up 4.6 percent. Tesco shares were down 2.3 percent.

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