Marks & Spencer will add to the gloom on Britain’s embattled high streets on Wednesday when it reports trading figures for the key post-Christmas period.
The City is braced for a sharp fall in non-food sales, with analysts forecasting a 6.2% decline in sales from the same period last year.
This comes after one of the worst weeks for retailing since the recession ended. Dixons and Mothercare issued profit warnings, Oddbins fell into into administration, and H&M, the worldwide fashion chain, reported a 30% fall in net profits in its first quarter.
Britain’s retailers are facing a dire combination of rising costs and lower consumer spending as shoppers struggle with higher food prices and government spending cuts.
Despite the grim economic climate, Marc Bolland, chief executive of Marks & Spencer, confirmed last week that the retailer was returning to the French market after leaving it a decade ago.
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The first store will open on the Champs Elysées in Paris in November and will focus on women’s fashion and food.
The chain also plans to launch a new brand for teenage girls this month. Called Angel, it will be for 11- to 16-year-olds.