M&S like an economic smoke detector, says Rose

Marks & Spencer’s executive chairman Stuart Rose today blamed the retail giant’s recent trading woes on the wider consumer slowdown as he faced shareholders at the group’s annual general meeting.

Mr Rose was speaking in the wake of M&S’s shock profits warning last week and falling sales, which have knocked the group’s share price by a third.

He said: “Marks & Spencer is a bit like an early warning system or smoke detector in your kitchen. It has the largest market share of any clothing retailer and the widest geographical spread.

“It listens to its customers and they are saying their purses are pressed. They are saying the cost of living is going up faster than for a long time. They are saying they are feeling the squeeze.”

However, the M&S chief pledged to carry on with investment plans such as store refurbishments as it would put the group in a stronger position for a consumer recovery.

Shareholders at the meeting were largely supportive of the retail boss, with one saying Sir Stuart had brought the retailer “back from the brink of the abyss” since taking over in 2004.

Others criticised his appointment as executive chairman – against corporate governance best practice – but independent deputy chairman Sir David Michels said the move had been “entirely and unanimously” supported by the board.

Reports suggested up to a third could fail to support Sir Stuart’s re-election to the post at today’s meeting, dealing a severe blow to the authority of the man credited with the turnaround of the high street bellwether since joining in 2004.

Mr Rose has pledged to remain with the retailer until 2011.

Last week’s grim update, which came a week earlier than expected, showed an overall 5.3% fall in UK like-for-like sales in the 13 weeks to June 28 – the worst quarter for the company since April to June 2005.