Marks & Spencer to slash food prices in Irish shops

MARKS & SPENCER is to cut the price of more than 1,000 food items in its Irish shops by an average of 7% as the company responds to fierce competition in the Irish retail grocery market.

Yesterday, Marks & Spencer Group Plc, Britain’s largest clothing retailer, said second-half profit rose 8.5% as it bought more cheaply from overseas suppliers and cut costs to combat faltering sales.

Net income rose to about £320 million (€480m) in the six months ended April 3, from £295 million (€447.5m) a year earlier, a spokesman said.

Marks & Spencer Ireland executive Neil Hyslop said they are delighted to announce that, from next week, they are introducing sharper pricing on more than one quarter of our food items in the Republic of Ireland stores.

“We will be setting new, lower prices on more than 1,000 products.

“As the business expands in Ireland, we are committed to passing on savings and continuing to offer best value to customers,” he said.

Since last year, Marks & Spencer have announced seven new store openings as well as extensions to their existing stores in Ireland.

The company does not give a breakdown of its Irish turnover or profits.

The company will open a number of new stores in Ireland, with an investment of almost e100 million and will create 750 jobs.

Shares in the company, which have underperformed sector peers by 19% over 12 months, eased 0.7% to 277.5p as analysts left current year profit forecasts unchanged around £800 million.

The core clothing business has failed to build on its 11% market share for 15 months, having recaptured 1% of the 3% it lost since its peak in 1998, when group profits were $1.2 billion.

M&S is losing out in formal women’s wear to main rival Next Plc and in childrens’ wear to Asda.

Supermarkets are also hurting M&S’s food sales, which are on the slide for the first time in two years.