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| Version 3 | Version 4 |
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| Marks and Spencer sees sales drop | Marks and Spencer sees sales drop |
| (about 12 hours later) | |
| The sales decline at Marks and Spencer has picked up pace as the retailer continues to suffer from tough conditions on the High Street. | The sales decline at Marks and Spencer has picked up pace as the retailer continues to suffer from tough conditions on the High Street. |
| The retailer said UK like-for-like sales had fallen 6.1% in the 13 weeks to 27 September. In the previous quarter sales had dropped by 5.3%. | The retailer said UK like-for-like sales had fallen 6.1% in the 13 weeks to 27 September. In the previous quarter sales had dropped by 5.3%. |
| M&S head Sir Stuart Rose said consumer confidence remained fragile and the retail environment was unpredictable. | M&S head Sir Stuart Rose said consumer confidence remained fragile and the retail environment was unpredictable. |
| M&S also said it would cut the amount it spent on improving its stores. | M&S also said it would cut the amount it spent on improving its stores. |
| "Capital expenditure this year is now expected to be around £700m, compared to our previous guidance of £800m-£900m," Sir Stuart said. | "Capital expenditure this year is now expected to be around £700m, compared to our previous guidance of £800m-£900m," Sir Stuart said. |
| Customers are being thoughtful about expenditure but that's hardly surprising in the world we live in today Sir Stuart Rose, M&S executive chairman class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23190/intraday.stm">Check M&S shares | |
| BBC business editor Robert Peston said the announcement was significant as it meant M&S would be placing far fewer orders than planned with other businesses. | BBC business editor Robert Peston said the announcement was significant as it meant M&S would be placing far fewer orders than planned with other businesses. |
| "That's a graphic illustration of how the horrors of the financial economy are infecting the real economy," he said. | "That's a graphic illustration of how the horrors of the financial economy are infecting the real economy," he said. |
| Sir Stuart told the BBC: "We are being a little bit prudent." | Sir Stuart told the BBC: "We are being a little bit prudent." |
| "Customers are being thoughtful about expenditure but that's hardly surprising in the world we live in today. We'll cut our cloth according to our means." | "Customers are being thoughtful about expenditure but that's hardly surprising in the world we live in today. We'll cut our cloth according to our means." |
| Despite the sales slide, M&S's shares jumped on the London market. Analysts welcomed news of the cost cuts and said the sales performance was in line with expectations. | Despite the sales slide, M&S's shares jumped on the London market. Analysts welcomed news of the cost cuts and said the sales performance was in line with expectations. |
| M&S shares closed up 8.1%, at 227.25p. | |
| International sales up | International sales up |
| Like-for-like general merchandise sales - which includes clothing - were down 6.4%, while food sales were down 5.9%. | Like-for-like general merchandise sales - which includes clothing - were down 6.4%, while food sales were down 5.9%. |
| M&S SECOND-QUARTER SALES Group sales up 0.4%UK sales down 1.6%UK like-for-like sales down 6.1% (General Merchandise -6.4%; Food -5.9%)Online Sales up 34%International sales up 24.2% | M&S SECOND-QUARTER SALES Group sales up 0.4%UK sales down 1.6%UK like-for-like sales down 6.1% (General Merchandise -6.4%; Food -5.9%)Online Sales up 34%International sales up 24.2% |
| Sir Stuart highlighted that looking at total sales, as opposed to like-for-like, gave a slightly different picture. Like-for-like sales exclude the impact of new stores. | Sir Stuart highlighted that looking at total sales, as opposed to like-for-like, gave a slightly different picture. Like-for-like sales exclude the impact of new stores. |
| "Our food sales are broadly flat in total, because we've been opening some stores, and in clothing the numbers are down about 3% in total terms," he said. | "Our food sales are broadly flat in total, because we've been opening some stores, and in clothing the numbers are down about 3% in total terms," he said. |
| Overall group sales were up 0.4%, with UK sales down 1.6%. However, there was a 24.2% rise in international sales and a 34% rise in online sales. | Overall group sales were up 0.4%, with UK sales down 1.6%. However, there was a 24.2% rise in international sales and a 34% rise in online sales. |