M&S said UK food sales grew 1.8% on a like-for-like basis in the third quarter, while general merchandise, which includes clothing, rose by 3.8%. The retailer increased its market share in food to 3.9%, according to researcher Kantar, as the chain launched more than 600 new products during the quarter. M&S Food was also promoted in a series of new ads over the festive season starring actress Caroline Quentin.
Total group sales rose 4%, with internet sales through M&S Direct up 25%. International sales were 4.5% higher.
Chief executive Marc Bolland said: "Marks & Spencer traded well through the important Christmas period despite the severe weather as customers continued to return to M&S quality. We delivered a great Christmas for our customers, from our stylish occasion wear to our innovative festive food."
M&S said it was pleased with its performance but pointed out that the five sale days after Christmas included in the latest figures were not included in the third quarter period last year.
In food, deals-of-the-week promotions and half-price champagne were popular and the company sold a record 1.9 million turkeys in the period, up 10% on last year, while salmon and prawns were up 17%. The company does expect food price inflation of around 1% to 2% in the final quarter of the financial year, but said it was focused on offering competitive pricing.
M&S said that, in clothing, customers bought up seasonal items such as Fair Isle knitwear and thermals, and 600,000 cashmere products worth £69 or more were sold in the period - up 10% on last year. Bolland said the company was witnessing a "return to quality", with customers willing to pay more for better-quality clothing.
M&S enjoyed a good run in 2010, with like-for-like sales consistently beating expectations and profits in the first half of the financial year up 17% at £348.6m. The latest figures reflect Bolland's first Christmas with the company, and the first trading update since he unveiled his three-year plan.
Looking ahead, the group remained cautious, saying: "We continue to expect the trading conditions ahead to be more challenging as consumers’ disposable incomes come under pressure from increased VAT rates and the impact of public spending cuts. In addition, we are facing increased commodity prices and significantly tougher comparatives. As a result we remain cautious about the outlook but are confident that we are well positioned to meet the changing needs of our customers."
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