Like for like food sales at premium retailer Marks and Spencer fell by 0.1 per cent in the 13 weeks to 1 July.
Food revenue increased by 4.5 per cent thanks to new store openings, while overall group revenue rose by 2.7 per cent.
The Q1 figures, which include the Easter trading period, have been described as “disappointing” by financial analysts, who said the retailer’s food sales are now falling behind rivals such as Tesco and Sainsbury’s.
M&S CEO Steve Rowe said: “Trading in the first quarter was in line with our expectations and we are on track with delivery of the plan we announced last year.
“In our food business, we delivered strong growth from new Simply Food openings, and are prioritising better ranging and stronger promotions.”
But research director at financial website cityindex.co.uk, Kathleen Brooks, said Rowe’s five-year turnaround plan is not bearing fruit.
She said: “Analysts are starting to question whether M&S is falling behind its peers, particularly in food and drink sales.
“CEO Rowe blamed the weak performance in food on higher food inflation and also new food store openings cannibalising existing outlets, which should have a temporary impact on sales.”
Brooks noted some good news for M&S as it is gaining market share overall.
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