M&S sales slump as rivals take market share

Marks and Spencer announced today its sales dropped for the fourth straight quarter as it priced its £2

Marks and Spencer announced today its sales dropped for the fourth straight quarter as it priced its £2.3 billion sterling share buyback offer in a 332-380 pence per share range.

The range for the buyback - pledged by chief executive Mr Stuart Rose in July as part of his strategy to fight off a £9.1 billion approach from entrepreneur Mr Philip Green - was broadly around the market's expected range of 340-375p.

But trading continues to suffer. Total like-for-like sales in the 10 weeks to September 18th fell 6.3 per cent compared to the 10 weeks to September 13th last year after a difficult summer for clothing and a poor performance in homewares.

Mr Rose told reporters the figures were "not attractive" and said this summer's bid battle with Mr Green had a negative effect on the business.

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The lacklustre performance compares poorly with rival Next, which defied a rainy summer to post a 15 per cent rise in first-half sales last week. One analyst said it was clear where Next had been getting its market share.

Shares in the firm slipped 1.3 per cent to trade at 341p in morning trade.