Wednesday, 7 January 2009

Is Stuart Rose the bringing of more bad tidings?

If you believe Robert Peston and most people do at the moment,Marks and Spencer's sales figures this morning are quite worrying.

The group which was forced to announce that it was cutting jobs yesterday ahead of this morning's statement reported like to like sales down 7.1 per cent in the thirteen weeks to 27th Dec.

For Peston though

it's probably the trend to unadjusted, overall sales that's more disturbing. For the group as a whole, these were 1.2% lower, thanks to a particularly strong performance outside the UK and on the internet.
But here's the ghastly bit: overall UK sales were down 3.4%, including the benefit of Marks' well-publicised and unprecedented promotional days.
Clothing was the worst performer, with sales 6.5% lower. Food was just 1.1% down - which represents a modest recovery.


and adds that

Also, the profit margin of Britain's largest clothing retailer was significantly lower, because Marks has been forced to slash prices.


The comments of its chief executive Stuart Rose are also worth listening to because he forecasts that the recession will last well into 2010.

Something that the chancellor hinted out in his interview with the FT.

It would be foolish to ignore the remarks of Rose,someone that has his fingers on the pulse but what will this do to the government's finances?

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