Biz people: M&S chief Rose hails recovery
Marks and Spencer Chief Executive Stuart Rose announced a recovery at the iconic British retailer yesterday after it reported its sixth consecutive quarter of underlying sales growth.
At Marks and Spencer's British stores, third quarter like-for-like sales which reflect how successful the chain was at generating underlying sales from the same floor space rose 5.6 percent, broadly in line with market expectations.
Underlying food sales rose by 3.6 percent, while underlying sales of general merchandise rose 7.1 percent as better products, more competitive pricing and a strong advertising campaign helped Marks and Spencer to gain market share.
"We have now delivered growth on growth in all areas of our business, thus completing the first part of our recovery plan. We remain on track to further drive and broaden our business," Rose said in a statement.
Yet, Rose echoed comments from executives at rival retailer Next last week in warning interest rate hikes, energy costs and tame growth made for a difficult outlook.
"The market's extremely tough out there," he told BBC radio.
"I am concerned at the prospects for next year, not least ... because of the cost pressures facing customers."
(China Daily 01/10/2007 page16)
