Marks & Spencer is to focus investment on supply chain and information technology systems following the downturn in the retail sales.
Its second quarter trading statement reveals that sales in the UK were down 1.6 per cent on last year.
Chairman Sir Stuart Rose said: “We have managed operating costs tightly and now expect operating cost growth for the full year of 4-5%, compared to our previous guidance of 7%. Capital expenditure this year is now expected to be around £700m compared to our previous guidance of £800-900m.
“For 2009/10 we now expect to spend around £400m with the focus of spend being on supply chain and information technology systems.”
“Consumers are increasingly cautious about their budgets. We have responded by offering our customers better values and more promotions across the business, while at the same time tightly controlling our costs.”