M&S profits dip on cost promotions

08/11/2011

By Maximilian Clarke

Marks & Spencer Plc (LSE: MKS) have seen profits dip £28million to £320m despite an overall growth in sales volume.

Much of this is down to rising food costs and falling household incomes, with M&S increasingly offering cost promotions and offers to retain customers. High street sales across the country remain subdued, as 'challenging economic conditions' have led to a string of high-profile administrations and store closures.

Food fared more strongly than the non food retail items, and the retailer’s online sales jumped 10%- reflecting strong growth in non store retailing across all sectors.

“Marks & Spencer performed well in the first half. Sales were ahead of last year despite tough comparatives and a challenging economic environment,” said Marc Bolland, Chief Executive. “Our Food business in particular performed strongly. We maintained our share of the Clothing and Food markets.”

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