Setback For Marks And Spencer As Sales Drop

High street retailer Marks and Spencer has seen a drop in sales this quarter, after a cold May impacted demand for spring and summer clothing.

Like-for-like sales on non-food stock fell 0.4% in the period April to June - much less a fall than the 1% predicted, but still disappointing after a previous quarter of growth in this sector.

In the same quarter last year non-food sales fell 1.5%.

Like-for-like food sales saw an increase of 0.3% compared to last year’s 1.7% rise, as M&S continue to see their luxury grocery items outperform others in the market.

The retail giant described the quarter as "challenging", but still saw annual profits for the year to 28 March rise 6.1% to £661.2m – the first profit increase for the company in four years.

Marks and Spencer has also announced it will be launching a £150m programme for investors to buy back shares, which is due to begin on 8 July.

Chief executive Marc Bolland said: "We continue to make progress against our key priorities.

"Our food business did very well in a difficult market.

"In general merchandise, sales were broadly level on last year and we are on track to deliver the planned increase in gross margin."

Mr Bolland has been under increasing pressure since taking over the firm in 2010, as the general merchandise (non-food) division of the business has failed to take off despite high-profile marketing campaigns and billions of pounds of investment.