M&S food sales slip further

MARKS & SPENCER yesterday reported a further deterioration in food sales during the final two weeks of a troubled half-year for the embattled retailer.

The latest update - covering the fortnight not included in a statement on September 21 - showed sales in clothing and home remained steady and that interim profits would be at the upper end of current market expectations.

However, M&S warned that bottom-line results for the six months to October 2 would include £80 million of exceptional charges, including an undisclosed amount for fending off a £9 billion takeover bid by retail entrepreneur Philip Green.

Office restructuring, the closure of its Lifestore venture in Gateshead, England and the cost of moving to a new head office are also included in the figure.

Stripping out the one-off items, M&S said it expected profits to be in the range £285 million to £295 million - compared with £325 million for the same period a year earlier.

The latest sales figures from M&S show like-for-like sales in the food department fell 2.6% in the 12 weeks to October 2, against the 2% fall announced on September 21 for the 10-week period.

While the decline in clothing and home remained at 7.7%, the overall like-for-like sales fall widened to 5.5% from 5.2%, the retailer said.