Marks & Spencer has experienced the worst quarterly performance for sales since early 2005.
The retailer said UK like-for-like sales had declined 6.1 per cent in the 13 weeks to September 27, with food sales 5.9 per cent lower in the same period.
M&S chairman Sir Stuart Rose said consumer confidence remained fragile and the retail environment was unpredictable.
Now the retailer plans to cut costs. “Capital expenditure this year is now expected to be around £700 million, compared to our previous guidance of £800m to £900m,” said Sir Stuart.
UK interests seem to be the weakest link. Overall group sales were up 0.4 per cent, with UK sales down 1.6 per cent, compared to a 24.2 per cent rise in international sales and a 34 per cent rise in online sales.
The retailer said it would cut investment in the business and put tight controls on costs, as it battles through turbulent times.
However, shares in the business bounced up almost eight per cent in early morning trading on October 2, after relief that the results were not worse.
M&S is to report its 2008-09 interim results on November 4.
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