M&S shares fall amid hit from ‘puzzling’ food sales
Same-store sales in M&S’s food business fell 0.1% in the first quarter, raising question marks over the growth of a business whose expansion has for years compensated for shortcomings in the clothing department. The drop was the second in succession.
“Most people think that the future of Marks & Spencer lies in selling more food than clothing,” said independent analyst Nick Bubb. “The fall in food sales is a setback.” M&S shares fell as much as 4.6% to the lowest in more than three months. Food’s faltering performance was all the more concerning given that the company’s grocery peers have seen a resurgence in sales on the back of food price inflation and a spell of hot, sunny weather. “We have been in fairly long-term growth in food whereas others are playing a recovery game,” Mr Rowe said. “We are continuing to gain market share. We’re quite happy about it.”
