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| M&S boss: 'I won't take pay rise' | M&S boss: 'I won't take pay rise' |
| (10 minutes later) | |
| Marks and Spencer chief executive Sir Stuart Rose has said he does not intend to take a pay rise this year. | Marks and Spencer chief executive Sir Stuart Rose has said he does not intend to take a pay rise this year. |
| And he also believes it unlikely that he will be receiving a bonus. | And he also believes it unlikely that he will be receiving a bonus. |
| His comments came on the day M&S revealed it planned to close 25 its small Simply Food stores, two of its regular stores and cut 1,230 jobs. | His comments came on the day M&S revealed it planned to close 25 its small Simply Food stores, two of its regular stores and cut 1,230 jobs. |
| "I certainly won't be taking a pay rise," he told BBC business editor Robert Peston. "It would be inappropriate for me to do so." | "I certainly won't be taking a pay rise," he told BBC business editor Robert Peston. "It would be inappropriate for me to do so." |
| Sir Stuart continued: "I am 99.9% certain there won't be a bonus. I certainly won't be getting anything over and above what my staff will enjoy." | Sir Stuart continued: "I am 99.9% certain there won't be a bonus. I certainly won't be getting anything over and above what my staff will enjoy." |
| 'Quality people' | 'Quality people' |
| In response to whether higher executives should be setting an example on pay, Sir Stuart said there must be absolutely "no payments for failure". | In response to whether higher executives should be setting an example on pay, Sir Stuart said there must be absolutely "no payments for failure". |
| However he said it was still right that the "appropriate" sums were paid to get "quality people" into businesses. He said there had to be a balance. | However he said it was still right that the "appropriate" sums were paid to get "quality people" into businesses. He said there had to be a balance. |
| STORES CLOSING See list of stores to be closed [31KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/01/rose_on_pay_and_vat.html">Read Robert Peston's blogCheck M&S share priceAnalysis: M&S cuts pension benefits The closures will mean the loss of 780 jobs. The retailer is also planning to cut 450 head office jobs. | |
| M&S also said UK like-for-like sales - which strip out the impact of new stores - fell 7.1% in the 13 weeks to 27 December. Total UK sales fell 3.4%. | M&S also said UK like-for-like sales - which strip out the impact of new stores - fell 7.1% in the 13 weeks to 27 December. Total UK sales fell 3.4%. |
| The two regular stores closing will be those at Croydon Valley Retail Park and in Woking. | The two regular stores closing will be those at Croydon Valley Retail Park and in Woking. |
| The firm also warned that its profit margins would be lower this year as a result of discounting, especially in food. | The firm also warned that its profit margins would be lower this year as a result of discounting, especially in food. |
| In the run-up to Christmas, the retailer held two sale days on which it cut prices by 20%. | In the run-up to Christmas, the retailer held two sale days on which it cut prices by 20%. |
| M&S said that it had 15% less stock when it began its sale on 27 December than it had the previous year. | M&S said that it had 15% less stock when it began its sale on 27 December than it had the previous year. |
| The announcements came on the same day that womenswear company Viyella, which was founded in 1784, became the latest long-established British company to call in the administrators. | |
| Other firms which have reported falling sales or job losses on Wednesday included Barclays Bank, finance firm Cattles, Blacks Leisure, and chocolate firm Thorntons. | |
| 'No material difference' | 'No material difference' |
| The firm's overall group sales fell by 1.2%, though there was a 26.9% increase in international sales and a 29% rise in online sales. | The firm's overall group sales fell by 1.2%, though there was a 26.9% increase in international sales and a 29% rise in online sales. |
| Asked by our business editor whether he agreed with Simon Wolfson, the chief executive of Next, that the government's emergency VAT reduction had been a waste of time and money, Sir Stuart said that he "doesn't do politics". | Asked by our business editor whether he agreed with Simon Wolfson, the chief executive of Next, that the government's emergency VAT reduction had been a waste of time and money, Sir Stuart said that he "doesn't do politics". |
| However, Sir Stuart, a member of the prime minister's business council, added that the VAT decrease had "not made a material difference to our sales". | However, Sir Stuart, a member of the prime minister's business council, added that the VAT decrease had "not made a material difference to our sales". |
| Sir Stuart also pointed out he thought the government was acting with the best of motives. | Sir Stuart also pointed out he thought the government was acting with the best of motives. |
| The retailer hopes that its redundancy programme, store closures and pension cuts will reduce its annual running costs by between £175m and £200m. | The retailer hopes that its redundancy programme, store closures and pension cuts will reduce its annual running costs by between £175m and £200m. |
| M&S plans to cap increases in its staff's pensionable pay to just 1% per year, reducing the liabilities of its final salary pension scheme. | M&S plans to cap increases in its staff's pensionable pay to just 1% per year, reducing the liabilities of its final salary pension scheme. |