Marks & Spencer posted a worse-than-expected 5.8 per cent drop in underlying sales of clothing, gifts and homeware over Christmas, as years of declines in general merchandise were exacerbated by online delivery problems.
The performance represented a fourteenth consecutive quarterly decline in general merchandise sales for the British retailer, far underperforming analyst expectations for a 3 per cent drop over the 13 weeks to December 27.
"We had a difficult quarter in general merchandise, dominated by unseasonal conditions and an unsatisfactory performance in our e-commerce distribution centre," Chief Executive Marc Bolland said in a statement on Thursday.
M&S had said in December its new online distribution centre was struggling to cope with demand in the run-up to Christmas, resulting in no next day deliveries and longer waits for customers.
The retailer has failed to stem declines in general merchandise which started four-and-a-half years ago, a period during which shoppers have become more cost-conscious and turned away from traditional stores towards the internet and discount chains.
It said a 0.1 per cent rise in like-for-like food sales in the period outperformed the grocery market but it was also lower than the 0.9 per cent the market had expected.