Marks & Spencer shocked City analysts yesterday as poor sales figures cast new doubt on the retail group's recovery.
Fresh from poor clothing sales over the Christmas season, M&S added to the gloom surrounding its recent performance with a 3.4 per cent decline in like-for-like sales for the 11 weeks to March 27.
Worryingly for M&S, the food department, seen as the backbone of its previous success, endured a lacklustre period, with same-store sales down 1.4 per cent.
Chief executive Roger Holmes conceded sales were "clearly not good enough" and pledged to take action on a number of fronts.
In the City, where M&S shares fell five per cent, analysts said management was under pressure to show the recovery that started in 2002 had not run out of steam as competition increased on the High Street.
Nick Bubb, of Evolution Beeson Gregory, said: "M&S was expected to report poor fourth-quarter sales but the news is even worse than expected.
"The loss of market share in food is nearly as alarming as the loss of market share in clothing."
Despite the latest disappointment, M&S said cost controls meant it was still likely to meet City results forecasts, which are for profits in the year to April 3 of about £760 million, up from last year's £713.7 million.
Thursday April 15, 2004
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