Supermarket

UK retailer Marks and Spencer (M&S) is expected to announce widespread job losses when it reveals its third quarter trading update on 7 January, with nearly 1,000 jobs forecast to be cut in stores and several hundred more from the group's head office and support functions.

According to UK daily The Times, Christmas sales at M&S are thought to have dropped by around 8.5 per cent excluding new stores when compared with 2007.

It is the latest blow to the retailer, which in November reported thatyear-on-year profit fell 34.1 per cent during the first half of 2008,down to £297.8m (€375.4m) from £451.8m (€569.5m) the previousyear.

Group chairman Sir Stuart Rose had at the time attributed the results to low consumer confidence and declining market conditions – both of which seem to have continued throughout the Christmas period.