Marks & Spencer chief sells shares as strategy announced

In a regulatory filing to the stock exchange the clothing, food and homewares retailer said that Sir Stuart had sold 100,000 shares on Tuesday at 410.7p, reducing his holding in the company to 1.43 million shares.

Yesterday a spokeswoman for Marks & Spencer said that the company could not comment on individual directors' share dealings.

Insider dealing rules would have prevented Sir Stuart from selling his shares until after the company's interim results had been released on Tuesday when Dutchman Mr Bolland said he planned to ramp up investment in the retailer's core UK business, as well as investing in online and overseas stores.

Mr Bolland, enticed from Bradford-based supermarket chain Morrisons with a 15m pay deal if he can hit his targets, said he will scale back plans to sell branded groceries, axe the Portfolio clothing label and stop selling household electrical goods - all initiatives launched by Sir Stuart, a former executive chairman and chief executive of Marks & Spencer.

Sir Stuart will retire as the group's non-executive chairman on January 4 after six and a half years at top of the firm.

He was initially parachuted into the retailer in 2004 to fend off a takeover approach from billionaire retail entrepreneur Philip Green.

He will be succeeded as chairman by veteran investment banker Robert Swannell.

Shares in Marks & Spencer closed down 2.5 per cent last night, a fall of 10.4p to 395.6p.