Fashion and food retailer Marks & Spencer has insisted that it remains on track for a strong showing this Christmas.
Announcing a 10 per cent drop in first-half profits, M&S chief executive Marc Bolland said the firm had performed well in spite of ongoing weakness in consumer spending. Although general merchandise sales declined by 2.5 per cent in the first six months of the financial year, food sales were up by one per cent.
“In an increasingly promotional environment, we managed costs tightly and took a decision to invest in giving our customers better value, choosing not to pass on the full extent of the increases in commodity prices,” Mr Bolland said. “We took decisive action to manage the business through the short term while continuing our focus on investing.”
M&S stated that it remains “well set up” for the festive period, despite being “cautious” about the outlook for the UK retail sector.
In September, the chain unveiled a £600m revamp of its stores and relaunched its clothing brands. Previous chief executive Sir Stuart Rose had ploughed £2bn into a large-scale refurbishment scheme during his tenure.
