Marks & Spencer sees food and clothing sales fall over benchmark festive season

the total looks like a steep climb from here, and he’ll be hoping a new deal to outsource 250 IT [information technology] jobs to the Indian conglomerate Tata is part of the solution.”

Marks & Spencer has come under increasing pressure from more digitally focused businesses, which have successfully put online sales at the heart of their strategies.

To combat this Marks & Spencer is introducing a Technology Transformation Programme as part of its five-year transformation plan.

Richard Lim, chief executive at Retail Economics, said: “M&S continues to struggle with the sheer pace of structural change reshap- ing the industry. The business model has come under increasing strain as the unforgiving shift towards online and the experience economy collide with inflexible leases, high rents and excess properties.”

International sales were also down, falling 9.8 per cent to £309m.

This p e r f o r mance reflected the sale of the company’s Hong Kongbased business, which was in line with a more streamlined franchise-led model Marks & Spencer is adopt- ing for its international business.

In retained owned and franchise markets, constant currency revenue increased by 6.5 per cent.

Full-year guidance has been maintained, but Mr Khalaf said the festive results would be disappointing for the group.

“Sales in clothing and home actually fell by the biggest margin, but in a market which is shrinking, that’s more a reflection of wider economic trends,” he said.