Two of the UK’s biggest retailers, Tesco and Marks & Spencer (M&S), have reported robust sales figures over the key Christmas trading period. Tesco said its like-for-like UK sales were up 6.8% over the six weeks up to 6 January. It also upped its annual profit forecast. M&S revealed sales had increased 8.1% over the 13 weeks to 30 December, with the company singling out women’s fashions as a key area of growth. Food sales were strong too, which aligns with a general rise in prices across the grocery sector.
Tesco revealed it had boosted its sales volumes and sales values, and had outperformed the wider market. Strong sales of premium food products, particularly the Finest range, were reported, with sales up close to 17%. Meanwhile, the company cut prices on nearly 2,700 products to keep pace with discount competitors like Aldi and Lidl.
M&S, however, was less bullish about the trading environment for the coming months, cautioning against the “uncertain” outlook for 2018 and “consumer and geopolitical risks”. The company also pointed towards rising costs as a challenge, notably wage and business rates inflation, although these issues are hitting many retailers and are not unique to M&S
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