Two of the UK’s biggest retailers, Marks & Spencer and Tesco, are expected to report a slump in sales over the festive period later this week.
M&S is expected to report a 3% drop in sales of its general merchandise arm over the last quarter on Thursday (January 8) as clothing sales continue to struggle at the retailer. The fall will mean M&S will have reported 14 consecutive quarters of falling fashion sales.
According to The Telegraph, analysts at Deutsche Bank, Tesco’s house broker, have forecast that the company will report a 5% drop in like-for-like sales for the three months to November 30 and then a fall of 4.3% for the period since then, including Christmas.
This would be an improvement on the 5.4% fall in sales during Tesco’s last quarter, but still underlines the battle facing chief executive Dave Lewis.
Next, on the other hand, reported a 2.9% increase in sales last week for the two months to Christmas Eve and said profits are likely to be ahead of the revised guidance announced at the end of October.