M&S undercuts Waitrose on prices

MARKS & Spencer is cheaper to shop in than Waitrose after slashing the cost of a host of products in the supermarket price war.

Steve Rowe, the outgoing chief executive of M&S, claimed the retailer has overtaken rival Waitrose with cheaper food prices for the first time since he began running its grocery business in 2008. Mr Rowe said: “In 2008 we were at a premium to Waitrose and now we’re at a discount. In clothing and home we lead the market on value perception.”

Stuart Machin, M&S’S head of food who this week takes over as one of two new bosses, slashed the cost of everyday essentials in April.

Despite its competitive prices, M&S warned profits will take a hit this year as the squeeze tightens on household finances. Mr Rowe said shoppers are expected to rein in spending after their summer holidays and the Jubilee celebrations.

The retailer posted a 6.9pc increase in sales to £10.9bn in the year to April, compared with £10.2bn two years ago, while pre-tax profits rose to £392m from £67m. It made a loss of £209m last year.

Food sales were up 10pc, while clothing and home increased by 3.8pc.