M&S makes a food fumble

Marks & Spencer (MKS) chief executive Steve Rowe has admitted that the group now faces “strong headwinds” in its food division. Problems at the general merchandising segment are well-documented, but like-for-like sales across M&S’s typically strong food offering have also started to slip – by 0.1 per cent in both the first and second quarters. Intense competition – the result of grocers growing online home delivery services – has also put downward pressure on margins, and management now expects a 75 to 125 basis point contraction by the end of the full year.