High street stalwart braced for further pain

Marks & Spencer is expected to report on another difficult quarter for its beleaguered clothing arm this week as speculation increases over cuts to the group’s store network.

City analysts expect like-forlike sales at the firm’s general merchandising division, which includes clothing, to fall by 3.9% in the second quarter.

In July, M&S revealed its clothing arm suffered its worst sales performance for more than a decade.

New chief executive Steve Rowe is undertaking a wide-ranging overhaul of the business as he attempts to turn the retail giant around.

In August, Mr Rowe swung the axe on 525 jobs at the retailer’s head office in a bid to cut costs.

He later embarked on a major shake-up of staff pay in an effort to mitigate the impact of the National Living Wage.

It has also been reported he is gearing up to shut dozens of its high street shops and phase out clothing sales at select stores.

Investec is pencilling in a 23% fall in half-year underlying pre-tax profits to £218 million.

Experts also expect the chief executive to reveal plans for the company’s international arm, which has more than 450 stores, with many forecasting closures as part of a major retreat.

Marks & Spencer’s betterperforming food division is forecast to see growth flatline.

M&S is restructuring.