The worst effects of the recession are over, Sir Stuart Rose has claimed, after Marks & Spencer confirmed its first rise in food sales for two years.

M&S reported a 4.6% rise in pre-tax profits for the year to 27 March to £632.5m – in line with analysts’ expectations.

UK like-for-like sales were up 0.9% for the year, while food sales increased by 0.3% – the first positive growth for two years.

“M&S has had a good year,” said Sir Stuart. “We have improved performance in all core areas, demonstrating the resilience of the M&S brand.

“In food, we returned to positive like-for-like growth for the first time in two years as we improved our value and innovation, while maintaining our unrivalled quality.”

The results are the last to be unveiled by Sir Stuart, who was succeeded as chief executive by Marc Bolland on 4 May and is expected to leave the business by the end of the year.

He added: “With the worst effects of the recession behind us, strong foundations in place and our core values intact, I am confident that M&S is well set for growth under Marc’s direction,” he added.

The retailer said it had achieved a “satisfactory” start to the first quarter of 2010. But Sir Stuart warned that consumers were “naturally concerned” about the impact of spending cuts and possible tax rises in the Budget on 22 June.

Read more
Pennycook fails to quell M&S move speculation (8 May 2010)
Early blow for Bolland as Dyson exits M&S (5 May 2010)
Gel-ignite: 20 challenges for Marc Bolland at M&S (10 April 2010)
Food sales up at ‘better value’ M&S (8 April 2010)

Topics