Tesco and M&S Christmas sales up but Asos down – Business Live | Business

Sales of turkey and menswear helped Marks & Spencer report impressive sales figures today, saying Victorian Scholarsinvestment director Interactive Investor:

“Marks & Spencer reported a 6.3% year-over-year increase in Christmas food sales, while clothing and home sales rose 8.6%, beating expectations.

International sales rose 12.5%, with strong performance in the Middle East. In food, M&S achieved its highest market share ever, while retail sales through Ocado accounted for around 30% of the average Ocado.com basket during the Christmas period.

However, M&S warned that “there are clear macroeconomic headwinds and potential cost pressures ahead.” However, the retailer expects full-year results to meet November guidance.

Marks & Spencer delivered an impressive golden quarter, maintaining its leading market share for the third year in a row, on the back of strong sales of seasonal foods such as turkey. Menswear, meanwhile, has been a key driver of M&S sales, partly because of its partnership with England during the Football World Cup. It has also been trying to become an omnichannel retailer, with about half of its growth coming through third-party brands, underpinned by its app and click-and-collect orders.

After a tough year for its share price, M&S has been recovering recently, rising more than 20% in the last month. “

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Today is Retail Super Thursday, which will feature a host of well-known UK retailers, including Tesco, marx & Spencer, Assos and Halford Inform councils on how they are doing over Christmas.

and Tesco It reiterated its profit guidance for the current financial year; it still expects a retail adjusted operating profit of between £2.4bn and £2.5bn.

Tesco It said it was the only major grocer to increase its UK market share, at 27.5%, compared with pre-pandemic levels.

Sales in the UK and the Republic of Ireland (ROI) over the Christmas period were 7.8% higher than a year earlier. Like-for-like sales rose 6.1% in the 19 weeks ended Jan. 7.

Ken Murphy, CEO, Tesco says Strong market share performance in the UK and ROI.

murphy The warning said “challenging conditions ahead”, but said:

I am very proud of the way Tesco has stepped up this Christmas to help customers through these difficult times.

By relentlessly executing on the strategic priorities we set out 18 months ago, we ensure customers know that wherever they choose to shop with us, they will benefit from the great value and quality of every part of their basket.

Tesco Point to its Aldi Price Match, which links the prices of 600 key products with those of its discount rivals, and Clubcard Prices, which helps customers spend less on festive products.

Sales of Tesco’s daily low price items jumped 7.4 per cent as customers looked for cheaper items amid the cost of living crisis.

across the high street, Marks & Spencer has declared a “strong Christmas deal”, with its food division recording its highest-ever market share during the four-week festive period.

In the last 13 weeks of 2022, same-store sales at M&S ​​rose by 7.2%, led by a 6.3% increase in food spending and an 8.6% increase in clothing and home sales.

Marks & Spencer posted record Christmas sales of more than £80m on 23 December; boosted by improved availability and strong demand for seasonal product lines including turkey.

Stuart Machin, Marks & Spencer More customers shop at M&S ​​over Christmas than in recent years, the chief executive said.

“M&S maintained its trading momentum in the peak quarter, with strong growth in both Food and Apparel & Home.

M&S Food outperformed the market in both volume and value for the second year in a row during the crucial 4-week Christmas period and achieved its highest market share ever. Clothing and home furnishing made great achievements again, and its market share hit a new high in seven years, and it continued to maintain its leading position in the market.

but ASOS It’s been a tough time, with UK sales down 8% in the final four months of 2022.

ASOS Blaming “weak consumer sentiment”, it said economic and political turmoil sparked by September’s disastrous mini-budget had hit demand. It also cites a delivery disruption last month (when Royal Mail workers went on strike):

it says:

This was particularly pronounced in September, which was impacted by the national news flow, and December, which was impacted by disruptions in the delivery market.

Total revenue fell 3 per cent, which ASOS said reflected “challenging trading conditions”.

and Halford It has cut its profit forecast, citing weak demand in the bicycle and car tire markets due to macroeconomic challenges.

it says:

Macroeconomic headwinds continue to impact the bicycle and consumer tire markets despite our share gains across all markets we measure, including bicycle, automotive and tires.

Other big names from the UK retail sector have delivered some decent Christmas sales figures so far.yesterday sainsbury and js sporty Both said their profits would be as high as expected.

debut today

Ministers have been urged to end mandatory pre-payment meters after Citizens Advice revealed more than three million people in the UK ran out of credit last year, equivalent to one every 10 seconds.

Investors in financial markets are hoping that US inflation will ease later in the day, when the consumer price index for December is due to be released. It is expected to have fallen to 6.5% from 7.1% in November.

agenda

• 7am GMT: China December car sales data

• 9.30am GMT: Latest UK economic and business activity figures from the Office for National Statistics

• 1.30pm GMT: US inflation report for December