This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7484700.stm
The article has changed 18 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| M&S sees sharp UK sales decline | M&S sees sharp UK sales decline |
| (20 minutes later) | |
| Marks and Spencer has warned that a slide in consumer confidence has seen its underlying UK sales drop 5.3% in the past three months. | Marks and Spencer has warned that a slide in consumer confidence has seen its underlying UK sales drop 5.3% in the past three months. |
| Rising pressure on customers' cash meant its food business - which focuses on top end goods - was badly hit. | Rising pressure on customers' cash meant its food business - which focuses on top end goods - was badly hit. |
| The director of its food business is leaving the firm immediately as part of a management reshuffle. | The director of its food business is leaving the firm immediately as part of a management reshuffle. |
| M&S said that general merchandise sales also lost ground - but were in-line with the downturn seen by competitors. | M&S said that general merchandise sales also lost ground - but were in-line with the downturn seen by competitors. |
| The iconic High Street retailer had expressed caution about consumer sentiment in May, when it said there had been a "mixed" start to its 2008/9 financial year. | |
| But chairman Sir Stuart Rose said that since then, "consumer confidence levels have deteriorated markedly and market conditions have become more challenging". | |
| But he added: "Four years ago, M&S was a weak business in a strong market. Today, we are a strong business in a weak market." | |
| Change | |
| M&S said like-for-like sales - which strip out the impact of store openings and closures - were down 5.3% in the UK in the 13 weeks to 28 June. | |
| Like-for-like food sales were down 4.5%, while general merchandise sales fell 6.2%. | |
| M&S has become renowned for its "Simply Food" products - which are marketed as fresh and high quality but are more expensive than some other stores. | |
| "Pressures on consumer spending and increased competitor pricing and promotional activity, coupled with changes in consumer buying patterns, have resulted in a significantly weaker performance," Sir Stuart said. | |
| "In order to meet these challenging market conditions, we need to increase the pace of change on a number of operating and trading initiatives" | |
| This means the director of food, Steven Esom, is stepping down immediately, and will be replaced by John Dixon, the boss of M&S Home and delivery business M&S Direct. | |
| Last month, M&S gave a hint of the tough High Street environment, lowering the profits the firm has to make for directors to earn bonuses. | Last month, M&S gave a hint of the tough High Street environment, lowering the profits the firm has to make for directors to earn bonuses. |
| M&S profits for the year to the end of March 2009 are expected to be well below the £1bn recorded in the previous year. | M&S profits for the year to the end of March 2009 are expected to be well below the £1bn recorded in the previous year. |