Marks & Spencer (M&S) has announced a fall in overall group sales for the third quarter of the year, down 1.2 per cent, with UK sales dropping 3.4 per cent compared with the previous year.
The results, which have been hit by the current economic crisis, haveresulted in a decision to close 27 stores this year at the loss ofaround 780 jobs, the UK-based group said.
Like-for-like sales in the UK dropped 7.1 per cent during the quarter ended 27 December, with food sales down 5.2 per cent. However, international sales jumped 26.9 per cent and online sales rose 29 per cent through the quarter, while the group enjoyed a record trading day of over £50m (€54.4m) on 23 December in the UK.
'Our trading stance throughout the quarter enabled us to offer our customers great value, grow our volumes, maintain our leading position and uphold our ethical stance,' said group chairman Sir Stuart Rose. 'We have made good progress on the key priorities set out at the interim results in November.'
In addition to the store closures, M&S has outlined proposals to reduce the cost of its head offices with the loss of up to 450 jobs, representing around 15 per cent of the personnel.
'We are aware that the proposed changes set out will be difficult for those members of staff impacted, but given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business,' Mr Rose added.
'We remain committed to maintaining our strong financial position. Capital expenditure for 2008/09 is expected to be no more than £700m and no more than £400m in 2009/10,' he said. 'We continue to target to be broadly cash neutral in 2008/09, and we have no short-term refinancing requirements.'
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