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Bolland gloomy despite M&S sales growth
Business Digest: M&S chief executive says spending cuts and Vat rise will hit customers' pockets
Marks & Spencer's chief executive Marc Bolland has warned of a challenging second half ahead. He fears that the October 20 public spending cuts and January's rise in Vat to 20 per cent will put pressure on customers' budgets.
His warning comes in contrast to the comments made by Sainsbury's chief executive Justin King, who said he was confident that customers had already tightened their belts in anticipation of leaner times.
But Bolland explained that his customer base was different, because of the higher ratio of non-food products at M&S compared with other supermarkets.
The cautious outlook comes despite a strong performance by M&S in the second quarter to October 2. Total British sales were up 6.5 per cent, helped by fashion where revenue rose almost eight per cent.
Read a full report at the Times (subscription required). ·
