After a poor clothing sales in the holiday seasons, Marks and Spencer Group Plc (LON:MKS) is ready to put in everything they have in their clothing and food business for better results in the Christmas. It can be a bit overwhelming that the GM (General Merchandise) division has incurred losses in the last 12 quarters but the company has been able to balance it out with 19 consecutive profitable quarters in its food business.
According to the executive food director of Marks and Spencer Group Plc (LON:MKS), Steve Rowe,
“This business hasn’t had foods and GM firing on all cylinders together for a long time. I think we’re very close to having a position where both the food and GM businesses are working positively.”
He further added that in addition to the food sector, which involved more innovation and strategy for delivering high quality products, the womenswear wear section has also performed extremely well. Rowe added, “I don’t think we’ll have a poor Christmas (in GM). We all believe it is time to deliver.”
With the increasing discounters in the UK, all the major food chains including Tesco PLC (LON:TSCO), Wal-Mart Stores, Inc. (NYSE:WMT), J Sainsbury plc (LON:SBRY), and Wm. Morrison Supermarkets plc(LON:MRW) are facing a decline in sale. However, Marks and Spencer Group Plc (LON:MKS) has managed to keep up as most of its products are sold under its own label with only 10% of its current products competing with other chains.
Marks and Spencer Group Plc (LON:MKS) can certainly expect a better Christmas season considering its innovative strategy under which the company changes up to 20% of its product range every year. The company beats the market with high quality products and Rowe added that it is this company that sells every 1 out of 4 turkeys that are sold in UK during Christmas. A better product quality will offer Marks and Spencer Group Plc (LON:MKS) an edge over its competition.
This article has been written by Prakash Pandey and edited by Serkan Unal.