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| Version 5 | Version 6 |
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| Falling food sales hit Marks & Spencer | Falling food sales hit Marks & Spencer |
| (about 4 hours later) | |
| Marks & Spencer has reported falling clothing and food sales and warned that it sees little improvement in sales this year. | Marks & Spencer has reported falling clothing and food sales and warned that it sees little improvement in sales this year. |
| Like-for-like sales, which strip out the impact of new stores, were down 2.2% for the six months to the end of September. | Like-for-like sales, which strip out the impact of new stores, were down 2.2% for the six months to the end of September. |
| Food sales were down 2.9% and clothing and home sales slid 1.1%. | Food sales were down 2.9% and clothing and home sales slid 1.1%. |
| M&S warned trading conditions for the remainder of the financial year will remain "challenging". | M&S warned trading conditions for the remainder of the financial year will remain "challenging". |
| "We are expecting little improvement in sales trajectory," the firm said. | "We are expecting little improvement in sales trajectory," the firm said. |
| M&S chief executive Steve Rowe told the BBC that food was "trading behind our expectations", but the retailer was "reshaping" its business with prices lowered on hundreds of food items. | M&S chief executive Steve Rowe told the BBC that food was "trading behind our expectations", but the retailer was "reshaping" its business with prices lowered on hundreds of food items. |
| "What we are doing is making sure we protect the magic of M&S," he said. | "What we are doing is making sure we protect the magic of M&S," he said. |
| Revenue fell 3.1% to £4.96bn, but underlying pre-tax profits ticked up 2% to £223.5m. | Revenue fell 3.1% to £4.96bn, but underlying pre-tax profits ticked up 2% to £223.5m. |
| Shares ended the day 0.5% lower at 300.9p, valuing the company at £5bn. | |
| Analysis | Analysis |
| By Dominic O'Connell, Today programme business presenter | By Dominic O'Connell, Today programme business presenter |
| Marks & Spencer has an organisation that is "silo-ed, slow and hierarchical". Not the words of a hedge fund looking to short the shares of one of the nation's favourite retailers, but the verdict of the company's own chief executive, Steve Rowe. | Marks & Spencer has an organisation that is "silo-ed, slow and hierarchical". Not the words of a hedge fund looking to short the shares of one of the nation's favourite retailers, but the verdict of the company's own chief executive, Steve Rowe. |
| The damning judgement is delivered in the company's half-year results. They show the same pattern of trade of recent years - clothing in a slow slide, food a bit worse than expected, with like-for-like sales down nearly 3% - but are remarkable for their clear-eyed view of what needs to be done to break that pattern. | The damning judgement is delivered in the company's half-year results. They show the same pattern of trade of recent years - clothing in a slow slide, food a bit worse than expected, with like-for-like sales down nearly 3% - but are remarkable for their clear-eyed view of what needs to be done to break that pattern. |
| Fewer stores - 100 will close - a better online offering, and in general a tightening-up of management and structures that should save £350m a year. | Fewer stores - 100 will close - a better online offering, and in general a tightening-up of management and structures that should save £350m a year. |
| Some critics will say that Mr Rowe is not going far enough, or fast enough, with some advocating a break-up of the company or other radical surgery. | Some critics will say that Mr Rowe is not going far enough, or fast enough, with some advocating a break-up of the company or other radical surgery. |
| There is a clue, though, in the half-year figures as to why stronger medicine has not been adopted. The average leasehold commitment that M&S has on its stores is 20 years. Going faster in closing stores or shrinking them would be extremely expensive. | There is a clue, though, in the half-year figures as to why stronger medicine has not been adopted. The average leasehold commitment that M&S has on its stores is 20 years. Going faster in closing stores or shrinking them would be extremely expensive. |
| Retail analyst Steve Dresser, director of Grocery Insight, tweeted: "You can't run a business on meal deals and 25% off wines forever but these things take time to back out of. | Retail analyst Steve Dresser, director of Grocery Insight, tweeted: "You can't run a business on meal deals and 25% off wines forever but these things take time to back out of. |
| "Closures of established stores will also impact food as it's not always the case they didn't perform - onerous leases also impacted." | "Closures of established stores will also impact food as it's not always the case they didn't perform - onerous leases also impacted." |
| M&S plans to close 100 shops by 2022, as announced in May - a move it says is "vital" for its future. | M&S plans to close 100 shops by 2022, as announced in May - a move it says is "vital" for its future. |
| Mr Rowe said the retailer was "continuing to review" its store closure programme and did not rule out further closures, especially as a third of its business would be online in future. | Mr Rowe said the retailer was "continuing to review" its store closure programme and did not rule out further closures, especially as a third of its business would be online in future. |
| He said 32 million people visited M&S stores every year, so the retailer had "a broad range of customers". | He said 32 million people visited M&S stores every year, so the retailer had "a broad range of customers". |
| "What we have to do is have a broad range of merchandise available that suits all their tastes," he added. | "What we have to do is have a broad range of merchandise available that suits all their tastes," he added. |
| Under its plan, M&S intends to have fewer, larger clothing and homeware stores in better locations. | Under its plan, M&S intends to have fewer, larger clothing and homeware stores in better locations. |
| The retailer points out that its clothing and homeware business has "an ageing customer base, a very wide range, a weak supply chain and and ageing store portfolio". | The retailer points out that its clothing and homeware business has "an ageing customer base, a very wide range, a weak supply chain and and ageing store portfolio". |
| It is facing heightened competition from online retailers, as well as discounters such as Aldi, Lidl and Primark. | It is facing heightened competition from online retailers, as well as discounters such as Aldi, Lidl and Primark. |
| Its directors were not awarded bonuses this year because of the disappointing results. | Its directors were not awarded bonuses this year because of the disappointing results. |