Yahoo Finance New M&S Boss: Clothing Sales 'Unsatisfactory'
The new boss of Marks and Spencer has ordered a turnaround of its clothing business, describing sales as "unsatisfactory".
Steve Rowe said he would update investors on his plans next month after the retailer reported a 2.7% dip in like-for-like sales in clothing and home sales during its fourth quarter.
He is retaining direct control over the troubled division - given its problems in recent years - despite taking over as group chief executive from Marc Bolland just days ago.
M&S blamed the performance on price deflation creating a "challenging backdrop" for trade but it admitted "some investment in price" in a bid to bolster its offering.
The figures also benefited from an earlier Easter, handing a 0.4% boost to clothing and home sales and a 1% rise in food.
Mr Rowe said that while he was happy with growing market share in its food division, he would be focusing on growing sales in clothing.
"I am very proud and privileged to be leading M&S. We are focused on getting even closer to our customers and putting them at the heart of everything we do.
"We had a mixed performance in the final quarter of the year. Our food business once again outperformed the market ...Although the sales decline in clothing and home was lower than last quarter, our performance remains unsatisfactory and there is still more we need to do.
"Turning around our clothing and home business by improving our customer offer is our number one priority.
"I will update you on my thoughts on the business in May," he concluded.
Its latest attempt to revive women's fashion sales came in February when it announced a partnership with TV presenter Alexa Chung.
The new boss vowed that M&S would spend time listening to customers and "keeping things simple", saying that the company was guilty of "over-complicating" things - a remark which one City analyst interpreted as a veiled dig at his predecessor.
Mr Bolland announced that he was leaving in January after five turbulent years in charge, with margin improvements in its clothing business undermined by persistent problems in technology and logistics combined with a disappointing customer response to many of its fashion ranges.
Honor Westnedge, lead analyst at Verdict Retail, said of today's trading update: "Steve Rowe has his work cut out to restore consumer confidence in its womenswear offer and acquire new shoppers to the M&S brand – something Bolland tried fearlessly to achieve but with minimal results (Other OTC: UBGXF - news) ".
