In its food business, the retailer reported sales excluding VAT were up 3.2per cent on the sme period in 2003, although like-for-like sales were down 2.1per cent. The company said its offer is too complicated with too many sub brands and too much product proliferation, and its performance varies significantly between stores.
M&S posted group profit before tax and exceptional items of £292.7m for the 26 weeks to October 2, compared to £325.1m in 2003. Interim operating profit was £242.2m, compared to £353.1m in the one-year-ago period.
Total turnover rose to £3.82bn, compared to £3.79bn a year earlier; however, UK retail sales slid 0.4 per cent to £3.3bn while international retail sales rose 1.4 per cent to £321.0m.
"We are addressing issues of ranging, availability, waste, markdowns, promotions, and pricing. We are also focusing on the environment of our food offer: Simply Food is being simplified from five different formats to two," the company said.
In May, the company appointed a new chief executive, Stuart Rose, to help turn around the ailing retail group. Today he announced a management reshuffle and is to take personal and direct responsibility for retailing, merchandising and buying himself.
Alison Reed, finance director, will step down by mutual agreement in February. Anthony Thompson is to become director of retail and Keith Cameron is to join as human resources director. A search is underway for an external candidate to become director of food; in the meantime Guy Farrant is to continue as food trading director and interim director of food.
Marks & Spencer also issued a trading update as trading has become "more difficult" since its last update four weeks ago.
"However, we do not believe this trend to be entirely Marks & Spencer specific," said Rose. "With Christmas, we still have our two key profit driving months ahead. It is therefore too early for us to predict the outcome for the second half at this stage."
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