M&S shuts door to outsiders for team

HIGH Street stores group Marks & Spencer will announce this week that it has filled two key vacancies. At the same time, it will report a fall of about 20% in full-year profits.

After months of interviews, chief executive Stuart Rose will confirm that Guy Farrant, acting head of food, and Steve Rowe, acting head of home, are now permanent appointments.

The news has already been greeted with scepticism by some retail analysts, who were expecting an outside appointment. 'It's not exactly dynamic,' said one.

Rose is believed to have seen a number of respected senior retailers - including Asda trading and marketing director Angela Spindler - but has opted for the two internal candidates who have more than four decades of experience between them at Marks & Spencer. Farrant, 42, has spent 26 years with the company and Rowe, 37, has clocked up 15 years.

This Tuesday, Rose will update the market on his strategy for recovery at the High Street retailer, which he is battling to transform in a tough retail climate. He is expected to announce pre-tax profits between £610m and £625m, down from £763m last year.

M&S does not normally deliver current trading information with its results statements, but the market believes the retailer has found the past few weeks as difficult as the rest of the High Street. Womenswear sales could be down as much as 10%, though company sources suggested the situation was not that bad.

While updating the City on his plans to improve clothing sales, Rose is expected to announce a £1bn programme to refurbish M&S outlets along the lines of the successful trial stores in Shoreham, West Sussex, and Basingstoke, Hampshire.