High street retailers are anticipated to be pushed further under the cosh by the end of the week. It comes with a flurry of quarterly trading updates that are scheduled to be released in the coming days.
According to some analysts at the Shore Capital Markets, the broker of Marks and Spencer, the troubled department store is one of several sets to reveal yet another decline in its sales over the festive period.
Some analysts are anticipating that the like-for-like sales of Marks and Spencer will be down by as much as three percent across both its food and clothing businesses over the final three months of the previous year, as the firm continues on with a turnaround effort that is outlined by Steve Rowe, the chief executive of the company, during its interim results that were released last November.
However, despite the decline, a late sales rush before Christmas that was reported last week by Next and John Lewis, is anticipated to help in keeping M&S away from the need to issue a profit warning. Some analysts still estimate that the pre-tax profits of Marks and Spencer will be approximately £528 million on the 10th of December announcement.
Debenhams, a Department store chain, is also expected to experience some struggles as it releases its results on the same day. An analyst at AJ Bell, Russ Mould, said that the expectations “remain low for the business to deliver some good news.”
“Debenhams hasn’t updated on trading since 25 October and we know from many of its competitors that November was a terrible month for retailers and December is also likely to have been a struggle,” he said.
“Debenhams is now worth a mere £57m which is astonishing for a business that generated more than £2 billion of sales in its past financial year.”