Stores to dish up robust sales figures

MARKS and Spencer is expected to report food sales growth of 10 per cent at its third quarter Christmas trading update onthursday, according to analysts.

Tesco and rival Sainsbury’s also have their festive trading updates this week and, like M&S, both are expected to announce robust figures, thanks to Britons splashing out on celebrations denied to them in 2020.

Shore Capital head of research Clive Black believes M&S saw the strongest growth in food sales as it had momentum going into its third quarter and it was up against weak comparisons from the previous year.

Sales of clothing and general merchandise are forecast to be flat. “M&S food trading was probably top of the charts. Don’t forget this time last year a lot of its stores were closed,” he said.

On the same day,tesco will announce its third quarter and Christmas trading update.

It is tipped to report flat sales growth, which Black said was a strong result, given that the major supermarkets achieved bumper sales for Christmas 2020. Although Sainsbury’s third quarter sales are forecast to be down 3-4 per cent onwednesday,

Black said it was a good performance given struggles at Argos and tough comparisons with the year before.