The papers put Marks & Spencer firmly in the spotlight following its first quarter update yesterday. M&S suffered a dip in like-for-like sales in the three months ending in July as it cut back on discounts but overall revenues increased thanks to further food store openings. However, the food division reported a 0.1% decline in sales.

The Financial Times notes that groceries have been a bright spot for M&S in recent years, as the retailer has persuaded customers to pay more for high-end ready meals, even as supermarket chains such as Tesco were locked in a price war that sent sales into reverse. The Telegraph adds that M&S made progress in arresting the steady decline of its struggling clothing division by reporting a significantly smaller drop in sales in its first quarter. The Mail takes a different approach and writes that the sales slowdown abated in the period but the clothing division continued to flounder. But in a separate article The Mail also examines why axing 27 promotions is sparking an M&S fashion turnaround as sales of clothes sold at full-price rise 7%.

The retailer said that despite the fall in sales there were clear signs that its turnaround strategy was working (The Times). Lombard writes in The Financial Times that M&S has found that falling food sales is not a good summer look as shoppers lose their appetite for Simply Food prices.  The Guardian focuses on the 4% slump in the M&S share price as investors get spooked by the slowdown in food sales.

The move into healthier drinks and snacks continued to pay off for PepsiCo, according to The Financial Times. The food and beverages giant delivered better-than-expected second quarter sales and profit as it benefited from higher prices and productivity gains in its domestic market. Net revenue climbed 2% to $15.7bn in the three months to 17 June and net income came in at $2.1bn. The Lex column in The Financial Times examines how PepsiCo is evolving to meet changing tastes and shopping habits.

Coke is to radically increase the amount of recycled plastic in its bottles amid pressure from environmentalists and new figures that show more than a million plastic bottles are bought globally every minute, according to The Guardian.

The Telegraph says Aldi is to undertake its biggest-ever recruitment drive to create 4,000 UK jobs as it steps up its expansion plans amid rising sales.

Dutch brewing giant Heineken is to serve up 30 pubs for sale as part of its planned takeover of Punch Taverns to get approval from the CMA, writes The Telegraph.

The Financial Times focuses on the early steps toward automation taken by French retailer Carrefour as it heads down the road to robotics.

The Financial Times reports on a new fund set up so investors can bet on decline of bricks-and-mortar chains. ProShares, a $27bn exchange traded fund manager, is preparing a trio of funds that profit from the woes of bricks-and-mortar retailers, according to prospectuses filed with the Securities and Exchange Commission.

June’s hot weather has helped pub group Young’s, which has 252 sites across London and the south east, says The Telegraph. The good weather meant sales in its managed houses division, which accounts for 95% of its pubs, rose 8.6% in the past three months on a like-for-like basis.

Britain’s economy will lose momentum both this year and next as the squeeze on living standards caused by higher inflation outweighs the benefits of the cheaper pound on exports, rating agencies S&P has predicted (The Guardian).

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