Here is a post from another place? If it is true then it makes disturbing news for the whole retail sector.

pauldawlish - 07 Feb'03 - 09:26 - 43 of 48


Bad news guys

Would you believe it! After posting yesterday, I learn last night that MKS is cutting staff hours until the full results are announced. It is awful news. The reason is due to worries about the full year profits not reaching expectations. Cutting staff hours will boost profits.

I sold my whole holding this morning..... little nuggets like this will get me a car sooner rather than later.

I'll buy back in after the dust settles.

They seem to be finding their way again and although I don't buy much from there I do note my tennage daughter occasionly looks now .... peeps will always buy clothes and food - a question of M+S ensuring switched sales in any overall downturn


ains

LONDON (AFX) - Marks and Spencer PLC has enlisted the help of design guru Terence Conran to boost its renewed assault on the 30 bln-stg-a-year home furnishings market, the Mail on Sunday reported without citing sources.
The move is further evidence of M&S's determination to take on leading chains such as Ikea and Habitat, it said.

M&S recently poached Selfridges PLC' respected chief executive Vittorio Radice in a 1.2 mln stg deal to run its home furniture division.

Don't forget that retail sales are in a sharp decline at the moment.

Hmmmmmmmmm .... I guess it's true that overall sales are falling off but we are really talking switched sales or potential switched sales.

I actually went into an M+S on saterday and was impressed with the progress made in terms of better more sophisticated display and designer product. Almost tempted to buy a few - at the right time. just looking at recent performance - up over 7% last week and nearly 4% on the month and a massive 47% outperformance on the sector over the 12 month.

Broker presentations last Monday helped - including Seymour Pierce and WestLB Panmure. The company highlighted the 10 per cent rise in like-for-like clothing sales it reported in January, and indicated that it was highly unlikely that sales would have weakened so substantially in just four weeks. It did not give any figures.That reassurance, prompted Richard Ratner at Seymour Pierce to repeat his buy advice yesterday.

WestLB Panmure raised its M&S view from neutral to outperform after its briefing, suggesting that investor pessimism on the outlook for UK consumer spending had been misplaced and believes that M&S can continue to deliver above-average sales growth, helped by its continued progress in recapturing market share in areas such as knitwear. It also believes that M&S is well placed to increase market share in lines such as mens casual wear and sportswear, and reckons the retailer has further scope to boost gross margins.



ains

Buy a teddy.

Official government statistics have revealed today that, while consumer spending on the high street is slowing down, the last few months have been a boom time for internet retailers


As reported on Startups.co.uk at the run of the year, the slowdown witnessed by high street retailers was not suffered by their online counterparts who saw record sales in December and January.

Retail association Interactive Media in Retail Group (IMRG) estimated that ten million people shunned the high street over the festive season to shop online, a 40 per cent increase on the year before, spending around 20 billion.

It grew 19 times faster than in traditional bricks and mortar sector in December and internet retailers have said that many customers who used their services for Christmas gifts have since returned, keeping the trend for shopping online going.

And now the Office for National Statistics (ONS) has backed up those claims with figures that have suggested online shopping has continued to thrive and now represents six per cent of all UK retail sales.

The ONS collected data from 80 internet retailers including names such as Boots, BHS, Debenhams, Mothercare and Next, who also have a high street presence, and found that online shopping increased by five per cent in January, while mainstream shops saw a 44 per cent slump.

And it was not just the traditional products, such as books, DVDs and CDs, boosting the online shopping trend but a whole range of items, from underwear to furniture.

Jo Tucker, managing director of the IMRG, told the BBC that any shoppers had found bargains galore online and waited for the January sales to make many purchases, thereby applying pressure on margins.

However, although online retail is looking healthier than ever figures also out today have revealed signs that such levels of consumer spending might not continue much further into the future..

A survey by credit card issuer Morgan Stanley has revealed the amount consumers planned to spend on their plastic had fallen, with people expecting to spend and average of 818 during the first quarter of the year compared to 927 six months ago.


M+S have an internet and mail order site - special offers at this time

ains

Buy a teddy bear online.

Being female I spend a fortune on my "undies" and once apon a time, M&S was my choice for all my supplies! I stopped - because the quality & choice dived, but last year I ventured back. Although still not enough choice, the quality seems (so far) to have improved a bit. So I have started again, but still not enough stock/choice. e.g. I like a specific "style" of thermal vest. Not cheap, but essential to keep out the cold so I don't scrimp on this. My choice in M&S was only 1 style. So I purchased one and went elsewhere for the rest. I would spend more, but they just won't give me the oportunity! The trick with successful retailing is small quantities, but with lots of choice. Quick resupply so not lumbered with unsaleable goods. M&S are not quite there yet - and until they are they won't be able to maximise the spending in their stores some of us would be prepared to do but don't.

Regarding M&S Clothing they need to adopt to engineering manufacturing techniques to keep up with rivals, utilising the 'just in time' concept of making and selling to customer demand. The problem with M&S in the past is that they anticipate what the customer would like and stock there stores with this clothing taking a gamble on whether the clothes will sell or not, whereas they should be stocking clothes in small quantites and seeing what sells quickest which they can then replace quickly on a day to day basis.

I had the impression this was happening right now to a large extent


ains

Yes you could be right. I actually like M&S clothing even in the darker days.

M&S are doing it in theory, but not yet 100% in practice! They still need to make some major changes in the way they work. They're heading in the right direction, still too slow. They can't replace things quickly as too much of the things they sell are produced overseas, especially in the Far East. Reaction times just aren't fast enough because of this. Ironically they need to move production back to the UK - but it is too expensive to do this, as most of the industry is dead..........

Sounds like they are in a dilemma then, if they can not justify moving production to UK against profits maybe they should just stick to food before the clothing side of things brings them totally down. Nothing like a good challenge though!

15:14

(REUTERS) RESEARCH ALERT-Dresdner cuts M&S to "sell"

RESEARCH ALERT-Dresdner cuts M&S to "sell"
LONDON, March 18 (Reuters) -
Investment bank Dresdner Kleinwort Wasserstein said on Tuesday it had cut its rating on UK department store
chain Marks & Spencer to "sell" from "hold"
and lowered its price target to 260 pence per share from 310p.

*** end of story ***

LONDON, May 20 (Reuters)

Leading clothing retailer Marks & Spencer lost two percent. Full year profits topped forecasts but were outweighed by concerns about slowing consumer spending and a bigger-than-expected pension deficit.