LONDON: Marks & Spencer, Britain’s biggest clothing retailer, lost market share over the last three months, industry data showed yesterday, reversing a small gain late last year that was heralded by its chief executive as a sign his recovery plan was working.
Data from research group Kantar Worldpanel showed M&S’s share of the UK fashion market declined 0.2 percent in the 24 weeks to February 16 and was down 0.4 percent in the latter 12 weeks of the period.
The figures showed the retailer’s share of the key womenswear market contracted 0.2 percent over the 24 weeks and 0.5 percent over the latter 12 weeks.
The loss of share is likely to up the pressure on CEO Marc Bolland, who has presided over 10 straight quarters of declining underlying sales in M&S’s general merchandise division, which includes clothing. Bolland is nearing the end of a three-year, £2.3bn plan to address decades of under-investment.
In January, he said the womenswear business was showing “early signs of improvement” under the management of a new team and a re-focus on quality and style. He highlighted womenswear market share growth of 0.1 percent over the 12 weeks to November 24 — the first growth in three years — and said the firm’s spring/summer collection had been well received by the fashion press. M&S declined to comment on the data.
Shares in the firm were down 1.2 percent at 467 pence at 1254 GMT, valuing the business at £7.64bn. The stock is down 7 percent over the last six months, though up 18.7 percent over the last year. Earlier this week Nomura, M&S’s joint house broker, reduced its 2013-14 and 2014-15 pretax profit forecasts on concerns of continued weak trading at the retailer, which also sells upmarket food. Reuters
