British retailer Marks & Spencer has reported a marked slowdown in sales growth as it unveiled a 2% rise in first-quarter like-for-like UK sales. These strip out the figures from new stores.
M&S said rising interest rates, wet weather and uncertainty over consumer spending hit trading in the three months to June 30.
It added that trading would remain 'very challenging' in the short-term, but said its recovery plans would not be derailed. The group's sales figures - often seen as a barometer of British high street trading conditions - compare with a rise of 8.2% in the first quarter of last year.
Food sales saw only marginal growth, rising by 0.7% on a like-for-like basis, while the group posted a 2.9% rise in like-for-like sales of general merchandise.
Stuart Rose, M&S chief executive, said trading had been 'particularly volatile' over the past three months due to the weather and changes in consumer spending.
The conditions were not helped by last year's strong performance and disruption amid store refurbishment, the group said.
M&S only recently made a return to health after almost a decade of depressed sales, reporting in May a 28.5% rise in annual profits to £965.2m. The group today stressed it would push on with store openings and its refurbishment programme, with plans to expand its retail space by 4.5% this year.
The firm opened 33 Simply Food stores over the past quarter alone, of which 21 were based on petrol station forecourts. M&S also launched 10 international outlets over the three months, with its first stores in Lithuania, Taiwan and Ukraine.
