M&S bucks high street trend
High street retailer, Marks & Spencer, reported a surprise increase in consumer spending in the three months to April yesterday, in defiance of warnings about reduced consumer confidence. Michael Wood asks what this means for other retailers.
M&S\'s figures were particularly strong for the store's healthy ready meals, with like for like sales increasing 3.4% in the quarter.
The news comes at a gloomy time for the high street as other major brands, such as Dixons and HMV, struggle to attract customers.
Mark Bolland, M&S\'s chief executive, argued that customer confidence had not been affected by the budget, as "people know the story by now and are getting on with it."
He stated that Marks & Spencer would focus on remaining competitive in the current market and maintaining the brand's 'great value and quality' image in a difficult financial climate.
In a dark time for the UK retail sector M&S\'s performance sends a strong signal - and its confident narrative is important, too. The UK economy is reliant on consumer spending and signs of confidence can persuade folk to loosen their purse strings.
Marks & Spencer has communicated its high quality and value proposition well to consumers, a lesson that other high street stalwarts could perhaps learn.
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