M&S have transformed into a multichannel retailer and are now said to have their own e-commerce platform and dedicated distribution center. Developments that seem to have accelerated their customers' Christmas shopping online.
While General Merchandise sales were disappointing and fell 5 percent for the retailer, e-commerce and food did well in an otherwise stale report. During the 13 weeks to 26 December 2015 M&S reports its best ever Christmas in food sales.
- M&S had an excellent Christmas in Food, delivering record Christmas sales and strongly outperforming the market. General Merchandise sales were disappointing. We continued to prioritise gross margin and held back from the heavy discounting seen across the market in the run up to Christmas, said Marc Bolland, Chief Executive at M&S.
E-Commerce up 21 Percent
Food sales were up 3.7 percent compared to last year. The online store however was the brightest point in the financial report. Online sales rose 20.9 percent driven by strong customer traffic.
- M&S.com delivered a strong performance with continued improvement in traffic and customer experience. Our distribution centre in Castle Donington performed well dispatching record volumes while delivering a high level of customer service, the company states in its qurterly report.
Looking at the bigger picture sales were flat across the Marks and Spencer Group.
Key markets such as India is performing strongly according to the retailer but the international franchise business continue to have a hard time across the Middle East.