M&S sales rise aids revival

The Marks & Spencer revival is continuing with the retailer announcing stronger-than-expected rise in sales.

Like-for-like sales grew by 6.8 per cent in first three months of the year, the retailer said.

Food sales rose by 5.6 per cent while general merchandise rose by 8.2 per cent.

However, M&S chief executive Stuart Rose said the trading environment remained tough.

Profits for 2005/06 are being predicted to be in the range of £745 million to £755m, he said.

The 6.8 per cent rise in sales for the first quarter, follows the previous periods rise of 2.9 per cent.

For the year to April 1, total like-for-like sales were up by 1.3 per cent, with general merchandise down by 1 per cent and food sales up 3.6 per cent.

Rose said: “We are pleased with the progress we are making, but there remains much to do.

“The trading environment remains difficult and we do not expect this to improve in the next financial year.”

The retailers strong rise in sales is in marked contrast to the performance of many other shops on the UK's High Streets according to the British Retail Consortium.

Figures from the BRC showed that like-for-like sales for the retail sector as a whole were 1.4 per cent lower in March than a year ago - the biggest fall since July last year.

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