M&S winning back customers

In his swan song as executive chairman, Sir Stuart Rose said that while people may have "less pounds in their pockets", customers are returning to M&S thanks to the popularity of promotions such as 'Dine In for 10' and the new 'Wise Buys' brand aimed at money conscious shoppers.

He was speaking yesterday as M&S announced a five per cent rise in underlying pre-tax profits to 632.5m in the year to March 27, ahead of forecasts.

Sir Stuart is to hand over the day to day running of the company to former Morrisons chief executive Marc Bolland at the end of July .

Yesterday Mr Bolland said he would outline his plans for the group at the interims in November. He refused to be drawn on his plans, but said he wouldn't introduce change for change's sake.

Mr Bolland is credited with transforming Bradford-based Morrisons by keeping the best elements of the supermarket chain and improving them.

Yesterday he said of M&S: "This is a great business, these are solid results in a difficult year. The company is really special, it's a great brand."

M&S said it is taking market share in clothing and has made a

satisfactory start to its new financial year.

Sir Stuart said like-for-like sales in the food business had returned positive and the group is winning customers back.

Although he was wary about the outlook for the year, he does not think the economy will dip back into recession and is confident M&S will stay in growth.

Measures such as a possible rise in VAT sales tax are expected in the new Government's emergency budget on June 22.

"We all have to take our medicine," said Sir Stuart.

n M&S is to open its largest UK warehouse operation in Bradford in the next few weeks.

Bradford will become the national centre for M&S furniture and long-life food such as biscuits and tinned goods.

There are currently just over 200 people employed at the site and another 100 will join in the coming months.