Marks & Spencer (M&S) has reported a drop in like-for-like UK sales of 6.1 per cent during the second quarter of 2008, attributed to slow consumer spending amid the uncertain global economic environment. Food sales in the UK fell by 5.9 per cent during the period.
Overall group sales increased slightly, by 0.4 per cent, mainly as a result of international sales growth of 24.2 per cent.
'In the UK sales were down 1.6 per cent, although they remained relatively steady quarter-on-quarter, despite the difficult environment,' said group chairman Sir Stuart Rose. 'Consumer confidence remains fragile and the retail environment unpredictable. Consumers are increasingly cautious about there budgets. We have responded by offering our customers better value and more promotions across the business, while at the same time tightly controlling our costs.'
He added that spending would slow this year as a result of cost cutting, with operating cost growth now expected to hit 4-5 per cent as opposed to the original forecast of 7 per cent.
'Capital expenditure this year is now expected to be around £700m (€884m) compared with our previous guidance of £800m-£900m (€1.10bn-€1.14bn),' Mr Rose said. 'For 2009/10 we now expect to spend around $400m (€505m) with the focus of spending being on supply chain and information technology systems.'
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