Marks & Spencer reports 2.9% annual revenue growth

LONDON - Marks & Spencer has reported a 2.9% increase in annual revenues to £8.4bn, despite cutting its marketing spend by 3.5%, and described trading at the start of 2010 as 'satisfactory'.

Marks & Spencer: positive annual results
Marks & Spencer: positive annual results

In the 52 weeks to 27 March, the retailer generated UK sales of £8.4bn, up 2.9% on the previous year.

Like-for-like sales rose 0.9% with general merchandise up 1.6%, and food increasing by 0.3%. It was the first like-for-like growth in food in two years.

Internationally, M&S opened 31 stores over the period and sales were up 5.7% to £949m. Profits before tax increased to £632.5m over the period, up from £604.4m last year.

The retailer revealed that its online sales through M&S Direct were up 27% to £413m, with its online market share rising from 5.3% to 5.6%.

M&S cut its marketing and related spend by 3.5%, from £127.4m to £122.9m over the period, because of a reduced number of external marketing campaigns.

The retailer said that it would implement "a targeted marketing strategy to respond to new competitors in key locations".

When M&S announced its 2009 final-quarter results, executive chairman Sir Stuart Rose conceded in an interview  that rival Waitrose had "bested" it in food sales.

Today's results are the last Rose will present, as he is due to leave the company soon. M&S is looking for a new chairman to work with chief executive Marc Bolland who joined from Morrisons on 1 May.

M&S recently launched , in an attempt to continue to drive growth through new channels. The retailer claims that it is the first mobile site from a major UK high street retailer.

In the three months to 27 March,

During March, approach, in favour of one focusing on messages of quality, provenance, sourcing, price and ethics. The ads, created by RKCR/Y&R, have replaced the line ‘This is not just ...' to ‘just because', with the slogan 'Quality worth every penny' also appearing on-screen.

Earlier this month, by the strength of their corporate reputation.

The Reputation Institute's UK Pulse Report ranks the survey that measures corporate reputation among the general public.

 

 

 

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