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Marks and Spencer

M&S sees clothing sales slip during festive period

On this episode of Talking Shop, we're joined by Dan Cate, CEO and Founder of SoldThrough. Dan is a heavyweight retail executive who has spent decades steering the merchandising and digital operations of America’s most iconic retail institutions, from Saks Fifth Avenue and Bloomingdale’s to Century 21 and Lord & Taylor. Today, through his platform SoldThrough, Dan helps international fashion brands cross the Atlantic and crack the notoriously brutal U.S. retail landscape. We break down his journey from the shop floor to the C-suite, the operational indicators that prove a brand is truly ready for international expansion, and how to navigate a fragmented American market without destroying your margins. We also discuss how to balance localised inventory with central efficiency, and the one non-negotiable metric that tells you a product has found genuine market fit.

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Sales at Marks and Spencer’s retail and home department fell by 25.1% over the holiday period.

In a post-Christmas trading update the company described its performance as “robust in the face of volatile Covid headwinds”, with total revenue from the second UK lockdown falling by 40.5%.

While sales in M&S’s stores were down the company reported that its online store has continued to do well, making £353m in revenue since December.

Overall, total UK sales at M&S were down 8.2% to £5.29bn.

Steve Rowe, chief executive said: “Given the on-off restrictions and distortions in demand patterns our trading was robust over the Christmas period.

“More importantly beneath the Covid clouds we saw a very strong performance from the Food business including Ocado Retail and a further acceleration of Clothing and Home online.”

He added: “I want to thank all my colleagues for a first-class execution of Christmas for our customers in near impossible conditions.

“Near term trading remains very challenging but we are continuing to accelerate change under our Never the Same Again programme to ensure the business emerges from the pandemic in a very different shape.”

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