M&S

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M&S

BBC, 11th April, 2006

Marks and Spencer beat sales expectations, gaining a 6.8% increase in sales in the first three months of this year, 2006. General merchandise, including clothes, rose by 8.2% and food was up by 5.6%

The company expects profits end 2005/6 to be £745m-£755m.

M&S's sales are a marked contrast with other UK retailers, where overall public spending has decreased 1.4% on March last year, the biggest fall since July last year. For example, Next's sales dropped 8.9% in like-for-like sales between January and March.

Stuart Rose, who has headed M&S since 2004, has been credited with the store's revival.

The new advertising campaign features Twiggy, which has also contributed to sales success (Twiggy was a very famous UK model in the 1960s and so she appeals to M&S's target market who are about the same age as Twiggy).

The company is spending £525m on refurbishing a third of the store portfolio

BBC, 11th April, 2006

There is a retail freeze on Britain's high streets. The British Retail Consortium (BRP) reports that retail sales are down 1.4% on last year. It is believed that a combination of the late Easter and unseasonably cold weather has kept people from buying summer clothes and related products.

The drop in spending has also been attributed to rising personal debts, taxes and energy bills