Marks & Spencer announces another shake-up

Ailing retailer Marks & Spencer announced a top-level shake-up today as it revealed a deterioration in trading conditions…

Ailing retailer Marks & Spencer announced a top-level shake-up today as it revealed a deterioration in trading conditions and posted first-half profit in line with expectations.

Finance director Ms Alison Reed will step down next year and three other executive directors will go before the end of the year as chief executive Mr Stuart Rose takes hands-on control of the retail icon he was hired to defend from billionaire tycoon Mr Philip Green.

Mr Rose will take direct responsibility for retailing, merchandising and buying as he halves the number of executive directors and strives for greater flexibility and faster decision making at the sickly group.

The profit warning some industry experts had feared was not forthcoming, and Mr Rose said it was too early to make any predictions with the key Christmas period still to come.

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But the CEO told a conference call that trading conditions had deteriorated since the last update on October 12th.

"Some of it's self-inflicted but we're not the only retailer to notice it," Mr Rose said.

The CEO, who announced a turnaround strategy in July as part of his defence against Mr Green's 400 pence-per-share approach, told the BBC he was "quietly confident" of revenue growth next year, but later qualified that.

The company said an exceptional charge for the closure of its "Lifestore" outlets, the relocation of head office and the bid defence would be £81 million, a slight increase on the projected 80 million pounds announced earlier this autumn.

Profit expectations at the retailer have been gradually guided downwards over the year as Mr Rose attempts to cut costs, reinvigorate ranges and reverse a sales decline that lasted four consecutive quarters. The company set an interim dividend of 4.6 pence per share.