GRAHAM HISCOTT M&S in need of Xmas gift Chain shrinks and cuts prices

M&S is promising shoppers a cheaper Christmas as it shuts stores and scraps promotions.

The chain – which appointed TV presenter Holly Willoughby as a brand ambassador in September – is “reshaping” its business.

Chief executive Steve Rowe said he is scrapping “confusing food offers” and closing “at least 100 branches”.

So far 29 have gone and he warned that older and smaller branches were under threat as the firm looks to “constantly churn” its network.

Underpinning the whole process is a desire to boost the company’s digital business until one-third of its sales are made online.

But in the short term the changes are hitting turnover. Like-for-like food sales slumped 2.9% in the last six months.

Clothing and home sales have also been affected by the chain’s attempt to reinvent itself, falling 1.1%.

Looking ahead things aren’t looking any brighter short term.

Yesterday, the company was forced to admit that trading conditions for the remainder of the financial year will remain “challenging”.

Mr Rowe said he’s cutting hundreds of food prices to battle the challenge of discounters such as Aldi and Lidl.

He said: “Every aspect of our ranges, how we trade, our supply chain and marketing, is undergoing scrutiny and change.” He added he knows it is important “to protect the magic of M&S”.

The boss predicted one in four turkeys sold this Christmas would come from M&S and promised that everything you need for Christmas dinner – including roasties and sprouts – would be lower in price.

“The company has been in desperate need of a major overhaul for years and, under a new and more dynamic leadership team, is getting just that,” said Lee Wild of Interactive Investor.

Tom Stevenson, of Fidelity Personal Investing, said the results were like a “cold shower”. He said: “The company is ruthlessly honest about the massive challenge it faces.”

But the honesty didn’t please investors. M&S shares slumped 4% in early trading before recovering on a day of generally positive stock market moves.

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BRAND NEW Ambassador Holly Willoughby