Store giants set to unveil tales of woe

MARKS & Spencer and Sainsbury’s are set to add to the retail sector’s woes, as both are tipped to say that trading is tough at their interim results this week.

On Tuesday M&S, which suffered the indignity of being relegated from the FTSE 100 for the first time in September, is expected to say that it has slumped to a £3.1 million half year pre-tax loss. That compares to a loss of £126.7 million for the same period last year. City analysts believe that revenues will be down marginally to £4.86 billion.

M&S is expected to fall into the red due to tough trading at its general merchandise and food divisions as well as the cost of restructuring plans.

As part of the turnaround plan of chief executive Steve Rowe, M&S is closing stores across the country.

The following day Sainsbury’s is tipped to unveil pre-tax profits of £191 million, up 44.7 per cent compared to its first half performance in 2018. It is believed the profit gain is due to the absence of the write-offs that blighted 2018’s interim results.

The supermarket’s revenues are tipped to be flat at £15.1 billion and it is thought chief executive Mike Coupe will say conditions are tough, due to ongoing price wars.

The market will be looking for an update on the future of its banking arm, which has stopped taking on new customers. It is thought that Sainsbury’s will sell its banking arm.

Primark owner Associated British Foods will announce full-year profits of £1.36 billion tomorrow, an increase of 5.9 per cent, according to the consensus forecast.