Tesco and Marks & Spencer report strong festive sales 

Robust demand for festive treats has led both Tesco and Marks & Spencer to report higher-than-expected sales over the crucial Christmas trading season.
Robust demand for festive treats has led both Tesco and Marks & Spencer to report higher-than-expected sales over the crucial Christmas trading season.

Robust demand for festive treats has led both Tesco and Marks & Spencer to report higher-than-expected sales over the crucial Christmas trading season.

Tesco’s Positive Performance

Tesco, one of the UK’s leading supermarket chains, reported a robust performance during the festive season, witnessing a 6.8% increase in UK sales over the six weeks ending January 6. 

The surge in demand for fresh goods and the premium Finest range contributed to a stronger-than-expected sales outcome. Consequently, Tesco raised its profit forecast for the full year.

M&S’s Festive Success

Marks & Spencer (M&S) also delivered positive results, with an 8.1% sales rise over the 13 weeks to December 30. Both its food and clothing segments performed well, experiencing a 9.9% increase in food sales and a 4.8% rise in the clothing and home section. M&S highlighted womenswear as a standout performer in non-food sales.

Uncertain Economic Outlook for M&S

While reporting a successful festive period, M&S cautioned about an uncertain economic outlook for 2024, citing consumer and geopolitical risks. 

The company also highlighted additional cost pressures stemming from higher-than-anticipated wage and business rates related to cost inflation. Despite the positive sales figures, M&S shares fell more than 5% in early trade.

Challenges in the Retail Sector

The British Retail Consortium’s recent warning about a “challenging” year ahead, coupled with higher living costs affecting household budgets, resonated with M&S’s cautious approach. The retailer acknowledged disruptions in shipping in the Red Sea, anticipating slight delays in clothing and home goods deliveries in February and March.

Employee Payouts and Share Scheme

In a positive move, M&S announced that over 9,200 employees, primarily customer service assistants, would receive payouts from a share scheme. Employees participating in the 2020 share save scheme are set to gain over £10,000 when the scheme pays out in February.

Market Response and Analyst Insights

Despite the positive results, M&S’s shares experienced a decline of over 5% in early trade. 

Analysts noted that while the company’s turnaround program appears on track, there is recognition that further efforts are needed to transform the business amid ongoing challenges in the retail sector.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

Leave a Reply

Your email address will not be published.

Previous Story

Unlocking Success: Thomas Carter’s Pioneering Journey as a Best time Blockchain Entrepreneur

Next Story

Aldo Group becomes operating partner for Sperry as Wolverine sells stake

Latest from BUSINESS

withemes on instagram

This error message is only visible to WordPress admins

Error: No feed found.

Please go to the Instagram Feed settings page to create a feed.