UK retailer M&S has reported a drop in profits for its first half, despite and increase in sales. The up-market international supermarket chain posted a decrease of 9.7 per cent in pre-tax profits, to £290 million (about €362 million).
Group sales up 0.9 per cent during the period, reaching £4.7 billion, with sales in the UK down by 1.4 per cent, on a like-for-like basis. Like-for-like food sales rose 1.1 per cent during the six months.
Sales through its international division saw a 3.6 per cent increase in the half, with a 6.1 per cent boost in the second quarter. Sales in its domestic market remained static in the second quarter.
The retailer's renowned general merchandise business continued to slide with a 4.3 per cent drop off in the half.
CEO Marc Bolland said the second quarter performance was better. He added, “We took steps to address the short term merchandising issues in General Merchandise and as a result, we delivered an improved performance. Food outperformed the market on a like-for-like basis." (6 Oct)
© 2012 - ESM: European Supermarket Magazine
