Shropshire Star

Shropshire shoppers 'not surprised' over M&S profit rise

It has been through the doldrums, but Marks & Spencer today revealed its reputation is slowly but surely being restored.

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The store, which has two large stores in Telford and Shrewsbury and food shops in Bridgnorth and Oswestry, has posted its first annual profits increase in four years.

M&S boss Marc Bolland said he was "tremendously enjoying" its growth.

Shoppers said today they were "delighted" to hear High Street retail giant Marks and Spencer was on the up.

Many took the news as a sign that the bad economic climate was coming to an end with business growth improving at the retail giant.

Sheila Holding, 74, Dorothy Hall,79, Sarah Moss, 34 and Susan Moss, 61, often meet up for a shopping spree at their favourite store at the Telford Shopping Centre.

Mrs Holding, of Shrewsbury, said: "M&S is better value for money so it is good for us all that the profits are on the up. I'm not surprised to hear this news."

Sarah Moss, also of Shrewsbury, added: "Everybody loves M&S food so we don't want to lose it off our high streets.

"It is a sign that things are picking up as it is one of our traditional high street stores so we are delighted to find out that things are looking up for the retail economy."

Susan Moss, 61, of Ditton Priors, added: "It's good value and good quality and that's what we want to see in our shops."

Underlying profits for the year to March 28 rose 6.1 per cent to £661.2 million, beating City expectations, and one analyst said Marks was now taking "considerable strides" towards the days when its annual earnings were £1 billion.

Mr Bolland took over at M&S in 2010 and last year notched up an unwelcome hat-trick of falling profits.

Under his leadership, Marks has poured billions of pounds of investment into the business to try to turn around its fortunes, while clearing out its top fashion team, and recruiting celebrities for high-profile marketing campaigns.

Yet sales at the beleaguered general merchandise division, which includes clothing, continued to crumble – with 14 quarters in a row of like-for-like declines until a 0.7 per cent lift in the most recent period.

M&S said GM sales for the 2014/15 financial year, which saw a like-for-like decline of 3.1 per cent. But after the upturn in the final quarter it is now looking ahead to a period of "modest sales growth".

Items such as a much-talked about 1970s-style suede skirt worn by TV presenter and model Alexa Chung have helped improve the image of Marks's clothing range.

M&S pinned the blame for its disappointing clothing sales performance for the year partly on the autumn weather – which it said was the third warmest on record – hitting sales of coats and knitwear.

The group's food division had an "outstanding" year, posting 0.6 per cent like-for-like sales growth despite the pressures facing the wider grocery sector where prices are falling under pressure from discounters Aldi and Lidl.

Mr Bolland said: "We are transforming M&S into a stronger, more agile business - putting the right infrastructure, capabilities and talent in place to drive our strategic priorities."

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