Marks and Spencer Show Positive Sales Growth but Remains Cautious of 2010

Up-Scale Retailer Marks & Spencer released sales data and showed that underlying sales posted its first increase in more than two years. Marks & Spencer saw underlying sales go up 1.2 percent, including clothing and home-wares, while food sales went up 0.4%. Their international sales went up 6 percent.

This increase in sales was brought about by increased focus on the promotion of their food business as well as the new introduction of the popular Indigo Range Brand. Despite the rise in sales, Marks and Spencer still fell short of analyst expectations.

The Sales incentives and lowered interest rates supported by government programs helped increase sales for December. Furthermore, Marks and Spencer was not hit as hard by the economic down turn because of smart cost cutting measures that they and other rival retailers employed.

However, economists still believe that the year 2010 may not be as fruitful for Marks & Spencer and other retailers because of the impending rise in taxes as brought about by the economic recovery plans. Experts believe that as the taxes rise, consumer confidence will continue to dive.