Good morning and welcome to our continued coverage of the world economy, financial markets, the eurozone and business.
Marks and Spencer has hailed a strong Christmas as the UK retailer’s recovery strategy begins to pay off … as a supermarket chain Tesco improves your profit outlook.
UK M&S sales rose 8.9% in the latest quarter, compared to pre-pandemic levels two years ago, a recently released trade update shows.
In the last 13 weeks of 2021, food sales were 12.4% higher than in the last quarter of 2019, and M&S retail parks and Simply Food stores “continued to outperform.”
The size of the baskets increased as customers used M&S for their daily purchases, perhaps spending more on high-end foods to celebrate Christmas after a difficult year.
Clothing and Home sales, which have long been a problem area for M&S, were up 3.2% compared to two years ago.
M&S says it is now “more confident” in hitting its recent improved earnings forecasts of £ 500 million, unless new material restrictions or lockdowns are imposed.
M&S CEO Steve Rowe said:
“Trading over the Christmas period has been strong, demonstrating the continuous improvements we have made in product and value. Apparel & Home generated growth for the second consecutive quarter, supported by strong growth in full-price and online sales. Food has maintained its momentum, outperforming the market in 12 and 24 months.
The market continues to be affected by the headwinds and headwinds that we reported in the first half, but I remain encouraged that our transformation plan is now driving better performance. “
In what retail analysts are calling Super Thursday, Tesco raised its earnings outlook, reporting strong sales in large stores and convenience outlets, with online sales significantly above pre-COVID levels.
The UK’s largest supermarket has reported an increase in holiday sales and stated that its market share is now the highest in four years.
Tesco’s comparable UK sales were up 0.3% year-on-year over the Christmas period and 8.8% more than two years ago, showing how grocery store sales have benefited from the pandemic.
Tesco says it now expects retail operating earnings slightly above its previous guidance, following stronger-than-expected sales this year.
Tesco CEO Ken Murphy says:
“We are delighted to have been able to help our clients have a great Christmas.
Despite mounting cost pressures and supply chain challenges in the industry, we continue to invest to protect availability, double down on our commitment to great value, and offer our strongest festive range yet.
This put us in a strong position to meet customer needs as COVID-19 once again led to an increased focus on celebrating at home. As a result, we outperform the market, increasing our market share and strengthening our value position.
ASOS and card Factory They are also reporting results (we will see them shortly …)
Yesterday, supermarket group J Sainsbury, sportswear / fashion firm JD Sports and home goods chain Dunelm alo raised their earnings forecasts.
Today we also get the latest unemployment figures from the US, which may show an omicron impact on the US job market.
Britain’s Office for National Statistics publishes its weekly check on the UK economy, covering indoor dining, shopping shortages, credit card spending and gasoline prices (among other indicators)
European stock markets are bracing for a subdued start, after US inflation yesterday hit its highest level since 1982.
- 9:30 am GMT: Weekly UK Trade Outlook and Economic Activity Data
- 13:30 GMT: Weekly US unemployment figures.
- 3 pm GMT: Federal Reserve Governor Lael Brainard’s Senate Hearing on her nomination to become Vice President of the Federal Reserve
George is Digismak’s reported cum editor with 13 years of experience in Journalism