The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksMarks & Spencer Share News (MKS)

Share Price Information for Marks & Spencer (MKS)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 261.00
Bid: 260.90
Ask: 261.10
Change: 0.30 (0.12%)
Spread: 0.20 (0.077%)
Open: 262.20
High: 262.80
Low: 260.60
Prev. Close: 260.70
MKS Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Britain's Black Friday genie now out of the bottle

Tue, 27th Jan 2015 12:17

* 2014 saw Black Friday take off in Britain in a big way

* Retailers discounted too much and struggled with orders

* Stores planning more selected discounts for 2015

By James Davey

LONDON, Jan 27 (Reuters) - Britons literally fell overthemselves for "Black Friday" bargains in November, so retailersneed to make the discount day imported from across the Atlanticwork for the industry.

Black Friday took hold in Britain in a major way for thefirst time last year, as store groups sought to match thepromotions of big U.S. online retailers such as Amazon and use the event to kick-start interest in Christmas shopping.

But many were not prepared for the level of demand on Nov.28, which saw shoppers queuing overnight, scuffles breaking outin stores, websites crashing and delivery operations overloaded.

Not only did that frustrate customers, but it also left manystore groups selling more stock at a discount than theyintended, and then finding there was less demand for full-pricegoods in the following weeks, hitting their profit margins.

Industry data showed the extent to which the traditionalbuild up of sales ahead of Christmas was skewed. While BlackFriday drove November retail sales growth to a three month highof 2.2 percent year-on-year, December's rise of 1.0 percent wasthe weakest outcome for that month since 2008.

With customers' expectations raised, and online retailerslikely to keep up the pressure, there seems little prospect ofBlack Friday -- named after the day of the year when U.S.retailers traditionally become profitable -- fading away.

"We do not believe that the genie can be put back in thebottle," said retail researcher Conlumino.

So Britain's stores are going to have to do better, and thatmay mean learning from those that coped well, such as electricalgoods chain Dixons Carphone.

It carefully planned targeted promotions with globalsuppliers on goods such as Samsung TVs, De Longhi coffeemachines and Bose speakers, allowing it to achieve a sales boostwhile maintaining profit margins.

"I think it's here to stay. It's something that we need toplan for and get used to," said Dixons Carphone finance directorHumphrey Singer of Black Friday.

"We pretty much start planning now for this year."

COPING STRATEGIES

Dixons Carphone's success was in contrast to the experienceof many other general merchandise retailers on Black Friday.

"It caused a huge pull-forward of sales, it straineddistribution networks, it undermined consumers' willingness topay full-price at Christmas and it ruined perceptions of onlinedelivery reliability," said independent retail analyst NickBubb.

Marks & Spencer, Britain's biggest clothingretailer, was the highest profile casualty, with its hugedistribution centre in Castle Donington, central England, throwninto chaos.

Unable to cope with the spike in demand, automated pickingand packing failures delayed the delivery of goods orderedonline. Disappointed customers lambasted the firm on socialmedia and a subsequent loss of sales was a major factor in thefirm missing forecasts.

Chief Executive Marc Bolland lamented that at any other timeof year "you don't get that artificial Christmas tree, wrappingpaper and a dress together in one order."

But he knows it's the company that must adjust.

"If consumers like to shop in that way more, then asretailers we need to find answers to it," he said.

Analysts say this year retailers may put more focus onspreading the home delivery of goods ordered on Black Fridayover a longer period and on increasing the appeal of "click andcollect" services, where ordered goods are picked-up in store.

Household goods chain Argos missed Christmas salesforecasts after reining in promotions in the wake of BlackFriday. That protected profit margins but hurt sales.

Chief Executive John Walden, who as an American is a veteranof Black Friday, reckons retailers will be more selective aboutwhat they put on sale this year -- "balancing the things thatmake money versus the things that may not."

Black Friday delivered the biggest week of sales indepartment store John Lewis' 150-year history.

Its boss, Andy Street, says the event will stay but reckonsit may be tempered this year, perhaps more focused around itstraditional electricals heritage.

"Customers got a very good deal," he said. "But standingback from it all, you actually have to say: 'Is it good for theindustry to concentrate so much business in that one day andthen have a relatively flat period afterwards?' The answer isprobably not." (Editing by Keith Weir and Mark Potter)

More News
23 Apr 2024 12:00

LONDON MARKET MIDDAY: FTSE 100 pushes to new high; AB Foods surges

(Alliance News) - The FTSE 100 hit another intraday high on Tuesday, driven by data providing some "fresh optimism" about the UK economy.

Read more
23 Apr 2024 08:54

LONDON MARKET OPEN: AB Foods profit soars boosting interim dividend

(Alliance News) - Stock prices in London continued to build on Monday's gains early on Tuesday, thanks to sentiment boosted by the prospect of interest rate cuts.

Read more
23 Apr 2024 08:36

TOP NEWS: Grocery inflation eases again in April despite early Easter

(Alliance News) - Grocery price inflation eased further in April, aided by a significant increase in promotional spending, new data showed on Tuesday.

Read more
22 Apr 2024 17:21

London shares climb over 1%, M&A action lifts midcap stocks

FTSE 100 up 1.6%, FTSE 250 adds 1.1%

*

Read more
22 Apr 2024 16:58

LONDON MARKET CLOSE: New record close for FTSE 100 as war fears ease

(Alliance News) - London's FTSE 100 surged on Monday, with blue-chip equities supported by an easing of geopolitical worry, and hope that the Bank of England is getting a handle on UK inflation.

Read more
22 Apr 2024 14:54

London close: Stocks jump on weaker sterling, easing geopolitics

(Sharecast News) - London's financial markets closed in the green on Monday, with the top-flight index remaining near record highs by the close.

Read more
22 Apr 2024 11:33

Jefferies upgrades M&S, Next and Sainsbury's to 'buy'

(Sharecast News) - Jefferies upgraded its stance on a host of UK retail stocks on Monday.

Read more
22 Apr 2024 09:04

LONDON BROKER RATINGS: Jefferies raises B&M to 'hold'

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning:

Read more
22 Apr 2024 08:49

LONDON MARKET OPEN: Hipgnosis jumps on Blackstone rival offer

(Alliance News) - Stock prices in London opened higher on Monday, as investors shook off nerves ahead of a key US inflation reading later this week.

Read more
19 Apr 2024 16:56

London close: Stocks mixed as investors watch Middle East newsflow

(Sharecast News) - London's stock markets closed in a mixed state on Friday as traders kept a close watch on escalating tensions in the Middle East.

Read more
17 Apr 2024 08:53

LONDON MARKET OPEN: Stocks mixed as UK data douses BoE cut hope

(Alliance News) - Stock prices in London opened mixed on Wednesday, with the FTSE 100 underperforming European peers, with a hotter than expected UK inflation reading lifting the pound.

Read more
16 Apr 2024 08:38

UK discounter B&M expects full-year profit at top end of guidance

2023/24 revenue up 10.1% to 5.5 bln stg

*

Read more
11 Apr 2024 15:56

London close: Stocks finish lower as ECB stands pat

(Sharecast News) - London's stock markets finished in negative territory on Thursday, as investors reacted to the European Central Bank's latest policy announcement and a producer price index release in the United States.

Read more
11 Apr 2024 08:59

LONDON BROKER RATINGS: JPMorgan raises M&S; HSBC likes Kingfisher

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning:

Read more
11 Apr 2024 07:54

JPMorgan upgrades Marks & Spencer to 'overweight'

(Sharecast News) - JPMorgan Cazenove upgraded Marks & Spencer on Thursday to 'overweight' from 'neutral' and lifted the price target to 330p from 260p as it took a look at European general retail.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.