Marks & Spencer profits have slumped for the 26 weeks to 1 October and food sales growth has slowed despite the retailer declaring that its food offer has “performed strongly”.
Pre-tax profit at the group fell eight per cent on the same period last year to £320.5 million and although food sales were up 2.1 per cent year on year for the six-month period, UK food sales slowed in the second quarter compared to the previous three-month period.
Like-for-like growth was just one per cent in the second quarter compared to 3.3 per cent in the first quarter.
CEO Marc Bolland said: “M&S performed well in the first half. Sales were ahead of last year despite tough comparatives and a challenging economic environment. Our food business in particular performed strongly….In an increasingly promotional environment, we managed costs tightly and took a decision to invest in giving our customers better value, choosing not to pass on the full extent of the increases in commodity prices.”
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