Marks & Spencer sees dip in food sales |
| Thursday, 02 October 2008 | |
 Food sales at Marks & Spencer (M&S) dipped by 5.9% on a like-for-like basis in the 13 weeks to 27 September 2008, the company said today.Overall, core like-for-like sales for the period dropped by 6.1%, and UK sales were down by 1.6%. Chairman Sir Stuart Rose said: "Consumer confidence remains fragile and the retail environment unpredictable. Consumers are increasingly cautious about their budgets. "We have responded by offering our customers better values and more promotions across the business, while at the same time tightly controlling our costs. "In food, we are committed to giving our customers outstanding product while implementing a range of initiatives to improve value, innovation and availability." He added that the gross margin for the UK business would be lower this year than last year, as a result of cutting prices and increased promotional activity. Rose said the company had managed its operating costs tightly and was now expecting costs for the full year to increase by 4-5%, compared with its previous estimate of 7%. Capital expenditure this year would be cut to about £700m compared with M&S's previous forecast of £800-£900m, and next year will fall to £400m. International sales increased by 24%. Analysts including Deutsche Bank had this week said that profits were expected to drop by as much as 6%. Related Articles
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