Marks & Spencer boss Sir Stuart Rose yesterday played down the chances of a repeat of last year’s "20% off" sales as he unveiled an unexpected profit rise at the under- pressure retailer.
Marks & Spencer boss Sir Stuart Rose yesterday played down the chances of a repeat of last year’s "20% off" sales as he unveiled an unexpected profit rise at the under-
pressure retailer.
It was a day of good news on the high street as Next, which last year distinguished itself by eschewing pre-festive discounting and has ruled it out for this year, issued a profits upgrade.
Rose, M&S’s executive chairman, said: "The intention is to trade fully priced up to Christmas."
Asked by The Herald if this meant a sale was ruled out, he said M&S, which has 65 stores in Scotland and 650 UK-wide, could pursue "tactical promotions" on particular product lines. But he added: "I do not see a blanket type of action that we took last year to stimulate trade."
Last year it conducted two sales before Christmas.
His remarks contrast with Debenhams chief executive Rob Templeman, who said last month: "I think it will be as promotional as last year."
M&S is planning to enter the key Christmas shopping season with a record nine-strong portfolio of television adverts starring celebrities such as actors James Nesbitt and Joanna Lumley, animated characters Wallace and Gromit, and model Twiggy.
Rose exuded confidence that shoppers would move upmarket in the run-up to Christmas, declaring "people are fed up of being fed up".
But he reiterated warnings that he expected the economy to improve only slowly next year with a "long burn" recovery and said consumer confidence is "fragile". M&S is also hoping for a boost from introducing 400 branded products such as Marmite and Tabasco into its stores, equivalent to 7% of its
current range.
M&S yesterday beat expectations by posting a 0.2% increase in pre-tax profit, excluding property sales, to £298.3m for the six months to September 26. Analysts had expected profits of £290m.
Underlying this, same-store sales were down 0.9%, with clothing and homeware down 1.4% and food off 0.3%.
But cost control and better buying helped to minimise the fall in profit margins.
Clothing retailer Next, which has 36 Scottish outlets, issued a profit upgrade.
It said it now anticipated full-year profits to be £30m higher than previously expected at £472m. This would be 10% higher than last year.
Marks & Spencer boss Sir Stuart Rose yesterday played down the chances of a repeat of last year’s "20% off" sales as he unveiled an unexpected profit rise at the under-
pressure retailer.
Rose, M&S’s executive chairman, said: "The intention is to trade fully priced up to Christmas."
Asked by The Herald if this meant a sale was ruled out, he said M&S, which has 65 stores in Scotland and 650 UK-wide, could pursue "tactical promotions" on particular product lines. But he added: "I do not see a blanket type of action that we took last year to stimulate trade."
Last year it conducted two sales before Christmas.
His remarks contrast with Debenhams chief executive Rob Templeman, who said last month: "I think it will be as promotional as last year."
M&S is planning to enter the key Christmas shopping season with a record nine-strong portfolio of television adverts starring celebrities such as actors James Nesbitt and Joanna Lumley, animated characters Wallace and Gromit, and model Twiggy.
Rose exuded confidence that shoppers would move upmarket in the run-up to Christmas, declaring "people are fed up of being fed up".
But he reiterated warnings that he expected the economy to improve only slowly next year with a "long burn" recovery and said consumer confidence is "fragile". M&S is also hoping for a boost from introducing 400 branded products such as Marmite and Tabasco into its stores, equivalent to 7% of its
current range.
M&S yesterday beat expectations by posting a 0.2% increase in pre-tax profit, excluding property sales, to £298.3m for the six months to September 26. Analysts had expected profits of £290m.
Underlying this, same-store sales were down 0.9%, with clothing and homeware down 1.4% and food off 0.3%.
But cost control and better buying helped to minimise the fall in profit margins.
Clothing retailer Next, which has 36 Scottish outlets, issued a profit upgrade.
It said it now anticipated full-year profits to be £30m higher than previously expected at £472m. This would be 10% higher than last year.
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