M&S rings up sales growth

RETAIL giant Marks & Spencer today posted a slow down in sales in the first three months of the year, but surprised the City with unexpected overall growth.

The retailer said big-impact promotions saw growth in food sales offset a decline in general merchandise, such as clothing, as UK like-for-like sales in the 13 weeks to April 2 grew at a better-than-expected 0.1 per cent.

The results come amid a poor run for UK retailers, after HMV, Next and Currys owner Dixons Retail all reported difficult trading in the period since Christmas.

Underlying general merchandise sales fell 3.9 per cent at M&S, less than expected, as strong sales of menswear and lingerie helped to mitigate the negative calendar effects.Underlying food sales rose 3.4 per cent, helped by over 320 new products and strong sales of healthy meal brands Count on Us and Simply Fuller Longer.

"We had a good fourth quarter in a challenging trading environment," said chief executive Marc Bolland.