Marks and Spencer Sales, Pre-Tax Profits Decline as Turnaround Begins

LONDON – Marks and Spencer reported sales and profits were down in the financial year as it shifts shape, from its shrinking store footprint to its smaller clothing sizes and plans for fewer collections, to its emphasis on digital through a new deal with Ocado. On Wednesday, the British retailer said revenue was down 3 percent to 10.38 billion pounds in the 12 months to March 31, with profit before tax and adjusting items falling 9.9 percent to 523.2 million pounds. Profit after tax climbed 28.2 percent to 37.3 million pounds, due to a decrease in adjusting items including operating costs. The retailer closed 26 full-line stores during the period and opened 48 units, many of them with smaller formats and a focus on food, and without a clothing offer. M&S is also casting a fresh eye over its store interiors, pointing out that around one third of its large-format units were opened before World War Two, and three quarters are older than 25 years. “Progress on renewing the stores has been limited to date, although we have moved a lot of internal walls and sight barriers. A renewal brand format and a modernization will be piloted in the year ahead,” the company said. The clothing

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