Little joy for UK retailers in Christmas sales figures

The retail chief, already under pressure from shareholders over M&S’s recent uninspiring performance, is expected to report a fall in like-for-like sales of general merchandise of as much as 1.5pc for December despite a high profile relaunch of its clothing range using celebrities such as Dame Helen Mirren.

M&S set off alarm bells in the City the weekend before Christmas when it launched a “Mega Day” promotion offering shoppers 30pc off clothing.

However, respectable growth in food sales, of around 2pc, is expected to save M&S from having to issue a formal profit warning, independent retail analyst Nick Bubb said yesterday.

The festive season has also brought little joy for Tesco boss Philip Clarke, whom City analysts believe could announce a fall of 2pc-2.5pc in like-for-like sales for the six weeks to January 4.

Mr Clarke is expected to fend off criticism about his strategy by announcing plans to speed up store refurbishments in a bid to stem market share losses to discount retailers such as Aldi and Lidl.

Mr Clarke is also expected to highlight plans to expand Tesco’s digital business, including the possible launch of its own smartphone.

Retail analysts have also warned that J Sainsbury’s run of 35 consecutive quarters of sales growth could end, with consensus pointing to a fall in sales of 0.4pc over the festive period, although some are optimistic that the supermarket chain may have eked out marginal growth.

Debenhams last week set off a warning flare over Christmas trading when it issued a shock profit warning.

However, there have also been some winners; Next and John Lewis unveiled strong festive sales figures last week.

• Jigsaw, the clothing chain now led by Peter Ruis, the man credited with revitalising John Lewis’s fashion department, saw sales jump 7pc to £64.2m in the year to September 28, while net profit grew 21pc to £1.9m.

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