The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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: 258.30
Bid: 258.30
Ask: 258.50
Change: 0.00 (0.00%)
Spread: 0.20 (0.077%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 258.30
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
26 Mar 2024 07:22

Ocado Retail sees strong first-quarter growth

(Sharecast News) - Ocado Group reported strong trading at its Ocado Retail venture in the first quarter on Tuesday, with an 8.1% year-on-year increase in total item volumes propelling retail revenue to £645.3m, itself up 10.6%.

Read more
26 Mar 2024 07:03

Ocado Retail quarterly sales up 10.6% as it wins more customers

LONDON, March 26 (Reuters) - British online supermarket Ocado Retail kept its guidance for its 2023-24 year after reporting a 10.6% increase in revenue in its latest quarter that reflected growth in customer numbers. (Reporting by James Davey, Editing by Paul Sandle)

Read more
18 Mar 2024 06:59

PRESS: M&S and HSBC planning loyalty "superapp", seven-year deal — Sky

(Alliance News) - Marks & Spencer Group PLC and HSBC Holdings PLC are preparing plans to announce a new seven-year deal that includes the creation of a loyalty "superapp", Sky News reported Sunday.

Read more
11 Mar 2024 16:51

LONDON MARKET CLOSE: Stocks mixed ahead of US inflation data

(Alliance News) - Stock prices in London closed mixed Monday, as investors nervously look ahead to some key data from the UK and US, which could help shape the latest interest rate decisions.

Read more
11 Mar 2024 14:48

London close: Stocks mixed as investors look to US inflation data

(Sharecast News) - London markets closed in a mixed state on Monday, reflecting a broader trend of cautious trading after a primarily weaker session in Asian markets overnight.

Read more
11 Mar 2024 10:03

LONDON BROKER RATINGS: Citi, Macquarie cut Virgin Money to 'neutral'

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

Read more
11 Mar 2024 09:03

RBC Capital upgrades Marks & Spencer to 'outperform'

(Sharecast News) - RBC Capital Markets upgraded Marks & Spencer on Monday to 'outperform' from 'sector perform' and lifted the price target to 300p from 285p.

Read more
11 Mar 2024 07:45

LONDON BRIEFING: Currys suitor rules out bid; Vanquis warns on 2024

(Alliance News) - Stocks in London are called to open lower on Monday, in a nervy start to the week ahead of US inflation data due on Tuesday.

Read more
7 Mar 2024 10:07

UPDATE: Marks & Spencer confirms Co-CEO Bickerstaffe to leave in July

(Alliance News) - Marks & Spencer Group PLC on Thursday said Co-Chief Executive Officer Katie Bickerstaffe will leave the company after the annual general meeting in July.

Read more
7 Mar 2024 09:25

M&S co-CEO Bickerstaffe to retire after AGM in July

(Sharecast News) - Marks & Spencer confirmed on Thursday that co-chief executive Katie Bickerstaffe will retire after the annual meeting in July "to pursue her board career".

Read more
6 Mar 2024 21:08

PRESS: Marks & Spencer Co-CEO Bickerstaffe to leave for Kingfisher

(Alliance News) - Marks & Spencer's Co-Chief Executive Officer Katie Bickerstaffe is set to leave the company, Sky News reported on Wednesday evening.

Read more
4 Mar 2024 15:29

London close: Stocks languish ahead of Wednesday's Budget

(Sharecast News) - London's stock markets finished in the red on Monday, reflecting investor apprehension ahead of the impending Spring Budget.

Read more
1 Mar 2024 16:53

LONDON MARKET CLOSE: Stocks rise despite mixed US manufacturing data

(Alliance News) - European equities had a solid end to the week, and a stellar run for US markets continued, with focus turning to a key week of fiscal and monetary policy updates.

Read more
1 Mar 2024 12:17

M&S wins legal battle against UK government over demolition of store

(Alliance News) - Marks & Spencer Group PLC has won a legal battle against the UK government over plans to demolish one of its flagship London stores.

Read more
1 Mar 2024 11:35

M&S wins court battle over Oxford St store demolition

(Sharecast News) - Marks & Spencer has come a step closer to demolish its main store on London's Oxford Street after the High Court ruled that a decision by government minister Michael Gove to block the plan was unlawful.

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.