Marks & Spencer revealed a hit to profits today after it opted not to pass on the full extent of rising costs to cash-strapped shoppers.
Marks reported a surplus of £320.5m for the six months to October 1, a drop of 8% on a year earlier and the company’s first reduction in profits for two years.
Chief executive Marc Bolland said the company had taken “decisive action” by offering promotions and better value to shoppers at a time when household finances were being squeezed.
The strategy came despite the company facing higher commodity costs, particularly in clothing.
Mr Bolland added that he remained cautious about the outlook but said the chain was “well set up” for the Christmas period.