Profits for Mark & Spencer Drop by 15.8%

An iconic company that’s maintained growth throughout the United Kingdom for nine decades has released their Q2 & Q3 reporters. The 2nd & 3rd quarter from Mark & Spencer’s Clothing saw sale volumes decline by 15.8%, which equates to £87.6 million being lost for this influential company. That doesn’t mean Mark & Spencer’s will sustain losses for a prolonged period, with CEO Steve Rowe noting that online sale performances are becoming more robust & sustainable. Lowered valuations for brick & mortar profits meant that several thousand jobs were terminated from the international corporation. Decreasing sales came from Mark & Spencer’s clothing and home manufacturing divisions.

The division that experienced significant losses that will inflict prolonged complications for Marks & Spencer’s is clothing. Sale volumes dropped by 53% between July to September 2020. Lockdown limitations have been cited for these extensive losses, with brick & mortar locations for M&S clothing to account for government-initiated protocols. It’s expected that Mark & Spencer’s will now face more significant losses, with the UK Government confirming that a 2nd lockdown is unfolding for six weeks. It means that for more than a month, Mark & Spencer’s cannot reopen their physical locations.

Six hundred locations are remaining closed until January 2021. It’s unlikely that parliament will permit Mark & Spencer retail stores to sustain customers after the lockdown is over. That’s because indoor spaces can cause increased transmission of Covid-19, meaning another outbreak & potential third lockdown for the UK. Responding to these lowered profits in physical stores hasn’t been easily managed. However, M&S Food Delivery has proven itself popular amongst UK Residents. It’s been their core division to see growth.

M&S Food Thrives, Suggesting Shift in Business Ventures

Mark & Spencer’s partnered with Ocado Retail in 2020, which followed after the international corporation’s main rival in Great Britain dropped Ocado. Waitrose didn’t believe that Ocado could sustain the delivery services required during the lockdown. Mark & Spencer’s had faith behind Ocado, which proved the correct decision. Profits from M&S Food Delivery jumped by 47.9% from July to September 2020. Consumers using this service can expect more than 750 updated products coming to the service through Ocado by January 2021.