M&S shares decline goes on
The London-based retailer’s shares fell 6.5 pence, or 2.3%, to 276 pence in London, extending their decline for 2003 to 12%. The stock has declined every year since 1997 with the exception of 2001, when it rose 94%.
Marks & Spencer is one of the British retailers that have cut prices during the Christmas holiday season in an effort to revive demand after consumer confidence fell to the lowest in eight months in November.
British consumers will increase their Christmas spending this year by the smallest amount since 1997, according to a survey last week sponsored by debit card company Switch.
Under chairman Vandevelde and chief executive Roger Holmes, Marks & Spencer has added fashions such as Per Una women’s wear and modernised stores to regain market share, which fell about three percentage points in the late 1990s from a peak of about 13%.
After winning back about one percentage point, the company’s share has failed to grow the past two quarters.
Sales during the holiday season, when most retailers make about a third of their annual sales, may be hurt by a drop in consumer confidence after the Bank of England raised interest rates last month, analysts said. Price cuts at the company’s stores may be a sign that revenue is flagging, they said.
