Falling sales at M&S could hit bonuses

THOUSANDS of staff at Marks & Spencer could miss out on their annual bonuses following a fall in festive clothing sales, it was reported yesterday.

The high street chain has seen its clothing sales drop by between 3% and 10% in the crucial run-up to Christmas, two Sunday newspapers reported.

The slump means the group will find it almost impossible to meet its financial and trading targets, casting doubt over the bonuses of some 65,000 store and head office workers, the reports said.

The bonuses can vary from a few hundred pounds for a shopworker to several thousand for a head office manager. In June, M&S employees shared bonuses of stg£43 million.

A spokeswoman for M&S declined to comment on the claims ahead of the group’s trading statement on January 14.

M&S saw its market share measured by value fall by 3% year-on-year in the 12 weeks to November 16, according to a leaked Taylor Nelson Sofres survey sent to participating retailers last week, one report said.

The survey suggested that M&S was losing market share to rivals Debenhams and Next.

Women’s fashion, partywear and children’s wear have been particularly badly hit during the season, which traditionally accounts for 35% of the group’s annual sales.

Official figures and surveys have shown that growth in high street sales slowed down in November, with clothing shops among those reporting falls.

The data has increased speculation that the recent interest rate rise has prompted shoppers to hold out for last-minute bargains.