M&S profits rise on makeover

Marks & Spencer’s resurgence has continued with the retailer reporting a 32% hike in half-year profits.

Pre-tax profits were reported as £405.1m on the back of strong sales in food and clothing, and an advertising campaign featuring Twiggy.

M&S Chief Executive Stuart Rose said: “We had a good first half. We have delivered better product, better service and better store environment. We have gained market share in all areas in which we trade.

“We continue to invest in our stores to provide for future growth. Our property review has identified opportunities in existing and new markets. Modernised stores are generating strong returns.

“We are increasing investment in some areas such as specialist staff which we believe will directly benefit our customers and top line growth. Although we continue to see costs rising ahead of inflation in many areas, we are controlling non-customer facing costs well.”

Mr Rose said that the plan for M&S remained the same: “While competition remains intense, we are focusing on driving profitable revenues and market share. We continue to improve and develop our customer offer in core areas through better product while also driving service levels and improving store environment. Opportunities to stretch our brand into new products and services and to broaden the business across new channels and overseas are now being pursued.”

He added that he believed M&S was well positioned for the “all important” Christmas period.

A trial on electrical goods sales has been extended to 13 stores in the UK.

(SP/KMcA)