Food boosts Marks & Spencer sales

Marks and Spencer

Business digest: High street chain sees modest sales increase despite poor demand for clothes

LAST UPDATED AT 13:17 ON Wed 6 Apr 2011

Marks & Spencer saw a modest increase of 0.1 per cent in its like-for-like sales in the first quarter of this year, despite a fall in demand for certain goods.

The last three months saw food sales increase by 3.4 per cent, which offset a 3.9 per cent drop in clothes and homeware sales.

The British high street retailer said it remained "cautious about the outlook", citing "pressure on consumers' disposable incomes and higher commodity prices" as a huge sales dampener.

The news comes after other high street chains such as HMV and Dixons issued profit warnings, and wine retailer Oddbins went into administration.

Read a full report at the Daily Telegraph. · 

For further concise, balanced comment and analysis on the week's news, try The Week magazine. Subscribe today and get 6 issues completely free.