M&S trading hit by '˜flat market'

High street stalwart Marks & Spencer is facing fresh pressure to shore up its key clothing business after a 'flat market' hit the group's quarterly sales.

Marks & Spencer has seen clothing sales come under pressure

In a closely watched trading update, the retail giant said clothing and home like-for-like sales fell 2.7 per cent in the 13 weeks to 26 March, as price deflation created a “challenging backdrop” for trade.

But the sales came in ahead of city expectations of a 3.4 per cent fall and improved on its performance in the third quarter.

Its comes days after new chief executive Steve Rowe said he would remain in charge of the clothing and home division because he was “personally committed” to getting it right.

He said: “We had a mixed performance in the final quarter of the year. Our food business once again outperformed the market by 3.5 per cent.

“Although the sales decline in clothing and home was lower than last quarter, our performance remains unsatisfactory and there is still more we need to do.

“Turning around our clothing and home business by improving our customer offer is our number one priority. I will update you on my thoughts on the business in May.”

Tony Shiret, an analyst at Haitong Research, said: “So it is Game On now that new management is in place. These figures are to a degree about the base not eroding and that has been achieved.”

M&S said it had bolstered the number of products in its spring and summer clothing range compared with last year, with sales in its Autograph range climbing 10 per cent. It also reduced the amount of clothes on promotional discount.