Retail sector slumps after M&S profit drop

Red was the colour in fashion for retailers today as the sector slumped in the wake of Marks & Spencer’s 40% drop in profits and dividend cut.

In contrast, the wider London market was in the black as financial stocks gained after reports that the government is mulling a sale of its shares in part-nationalised Lloyds Banking Group and Royal Bank of Scotland. The FTSE 100 Index was up 47.2 points at 4493.6 by mid-morning.