Marks & Spencer profits fall by £10m
Marks & Spencer revealed a £10 million fall in profits today as it counted the cost of its worst non-food sales performance for three years.
The retail giant posted a fall in half-year profits to £297 million, from £307 million a year earlier, after admitting to mistakes in its core womenswear range.
But under-pressure chief executive Marc Bolland today offered signs of a turnaround, revealing a 1.8 per cent fall in non-food sales in the second quarter. That is a marked improvement on the 6.8 per cent slide in the first three months, which was its worst performance since December 2008.
M&S said it had taken "decisive action" by improving buying and merchandising, while also overhauling its general merchandise team and hiring new managers – including tasking former Debenhams and Jaeger boss Belinda Earl with revitalising the store's womenswear range
The store said recent trading had been volatile and the second half of the year will be tough as rivals launch sales. It blamed the first-quarter performance on wet weather and a shortage of some products.
Retail experts fear the chain, with more than 700 stores including branches in Stafford, Wolverhampton, Brierley Hill and Walsall, is losing its grip on the key womenswear market. Its decision to stop selling electrical goods has also hit sales.
Like-for-like sales of general merchandise was down by 1.8 per cent in the last year. But food sales rose by 3.4 per cent and total group sales were up 0.9 per cent at £4.7bn, helped by healthy sales in children's clothes.
