M&S posts surprise overall growth

The retailer said big-impact promotions saw growth in food sales offset a decline in general merchandise, such as clothing, as UK like-for-like sales in the 13 weeks to April 2 grew at a better-than-expected 0.1 per cent.

The results come amid a poor run for UK retailers - after HMV, Next and Currys owner Dixons Retail all reported difficult trading in the period since Christmas.

Shares were up five per cent after the company published its trading update.

A decline in total like-for-like sales of 2.5 per cent was forecast by analysts, with a particularly severe drop of 6.2 per cent predicted for general merchandise.

But M&S has continued its bullish run, with like-for-like sales consistently beating expectations earlier in the financial year.

The retailer said the slowdown in sales in the fourth quarter, compared to 2.8 per cent like-for-like growth in the third quarter, was partly down to tough comparatives a year ago.

While general merchandise sales dropped 3.4 per cent on a same-store basis in the fourth quarter, the retailer said this was partly down to tough annual comparatives and it still managed to grow its market share by 0.3 per cent to 11.6 per cent.

In food, like-for-like sales were up 3.4 per cent and market share was up 0.1 per cent to 3.8 per cent, driven by the chain’s promotions, such as the Dine In offer, which proved popular on Valentine’s Day and Mother’s Day.

Chief executive Marc Bolland said: “In times like these, customers are increasingly turning to M&S for value, quality and innovation. Strong products backed by great advertising meant we outperformed the market and grew share in both food and clothing.”