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| Version 2 | Version 3 |
|---|---|
| M&S sales fall but beat forecasts | M&S sales fall but beat forecasts |
| (about 1 hour later) | |
| Marks and Spencer has reported a fall in sales for the fourth consecutive quarter, but its figures were better than expected. | Marks and Spencer has reported a fall in sales for the fourth consecutive quarter, but its figures were better than expected. |
| M&S said like-for-like sales in the UK - which strip out the impact of store openings and closures - were down 4.2% for the 13 weeks to 28 March. | M&S said like-for-like sales in the UK - which strip out the impact of store openings and closures - were down 4.2% for the 13 weeks to 28 March. |
| Experts had forecast a bigger decline of as much as 7.5%. Shares in M&S were up 10% in early trading. | Experts had forecast a bigger decline of as much as 7.5%. Shares in M&S were up 10% in early trading. |
| The retailer also said it was turning around its troubled food business. | The retailer also said it was turning around its troubled food business. |
| Like-for-like food sales were down 3.7%, while general merchandise sales - which includes clothes - fell 4.2%. The company added that it maintained market share in clothing over the full year. | Like-for-like food sales were down 3.7%, while general merchandise sales - which includes clothes - fell 4.2%. The company added that it maintained market share in clothing over the full year. |
| Overall group sales were up 1.9%, with significant increases seen in online and international sales. | Overall group sales were up 1.9%, with significant increases seen in online and international sales. |
| In January, M&S announced 1,200 job cuts and plans to close 27 stores. It intends to close 25 of its Simply Food stores and two of its regular stores. | In January, M&S announced 1,200 job cuts and plans to close 27 stores. It intends to close 25 of its Simply Food stores and two of its regular stores. |
| 'Plateau period' | 'Plateau period' |
| Sir Stuart admitted that there had been a downturn in food sales in the past year because the company had not been giving customers what they wanted. | Sir Stuart admitted that there had been a downturn in food sales in the past year because the company had not been giving customers what they wanted. |
| What interests me is whether [Sir Stuart] thinks that we're witnessing a structural change in the economy which will have profound implications for his industry BBC business editor Robert Peston Read Robert Peston's blog See M&S's share price | What interests me is whether [Sir Stuart] thinks that we're witnessing a structural change in the economy which will have profound implications for his industry BBC business editor Robert Peston Read Robert Peston's blog See M&S's share price |
| "We didn't give them the right innovation, we didn't give them the right value for money in some cases and we didn't give them the right promotions," he said. | "We didn't give them the right innovation, we didn't give them the right value for money in some cases and we didn't give them the right promotions," he said. |
| However, he added that food prices are now going down and the company was making progress. | However, he added that food prices are now going down and the company was making progress. |
| "We're in a plateau period," he said. | "We're in a plateau period," he said. |
| "[The outlook] hasn't got any worse but there are no signs at all that it's getting any better." | "[The outlook] hasn't got any worse but there are no signs at all that it's getting any better." |
| Turnaround underway? | Turnaround underway? |
| The decline in sales was a slowdown from that seen in the previous quarter when sales fell by 7.1%. | The decline in sales was a slowdown from that seen in the previous quarter when sales fell by 7.1%. |
| "M&S seems to have been here before," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers. | "M&S seems to have been here before," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers. |
| "After criticism of misguided offerings, along with the company's own admission of strategic mistakes, the turnaround seems to have begun." | "After criticism of misguided offerings, along with the company's own admission of strategic mistakes, the turnaround seems to have begun." |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| However, according to BBC business editor Robert Peston, the key issue is whether Sir Stuart thinks we are witnessing a structural change in the economy which will have profound implications his industry. | However, according to BBC business editor Robert Peston, the key issue is whether Sir Stuart thinks we are witnessing a structural change in the economy which will have profound implications his industry. |
| This would be caused by consumers seeking to rebalance their finances, which would involve them saving more and spending less. | This would be caused by consumers seeking to rebalance their finances, which would involve them saving more and spending less. |
| Sir Stuart was "rather non-committal" on this, says Mr Peston. | Sir Stuart was "rather non-committal" on this, says Mr Peston. |
| Shareholder revolt | Shareholder revolt |
| Sir Stuart has also been faced with increasing opposition to his dual role of chief executive and chairman. | Sir Stuart has also been faced with increasing opposition to his dual role of chief executive and chairman. |
| A group of shareholders at M&S have been calling for the appointment of an independent chairman by 2010. | |
| The Local Authority Pension Fund Forum believes the current situation puts too much power in the hands of one individual. | The Local Authority Pension Fund Forum believes the current situation puts too much power in the hands of one individual. |
| However, Sir Stuart said there was no change in the board's position since last year when he took on the combined role. | However, Sir Stuart said there was no change in the board's position since last year when he took on the combined role. |
| He is currently committed to staying with M&S until 2011. |