M&S taking the hi-tech road

STORES GROUP Marks & Spencer shares leapt to their highest level in almost two years on City hopes that its women's fashion is finally back in vogue.

New industry data reveals that its share of the womenswear market is growing for the first time since 1999. Menswear and childrenswear sales are also on the rise.

The improvement came as retail sales in the economy as a whole faltered for the first time in 18 months. High Street sales dropped 0.1% in October but are still 5.7% higher than a year ago.

Lower prices and new ranges under the watchful eye of womenswear boss Yasmin Yusuf appear to be working. The per una range designed by fashion guru George Davies is also selling well.

Marks rose 8 1/2p to 333 1/2p on Thursday. The shares have already climbed 75% over the past year.

The company is also planning a foray into hi-tech novelty clothing. It hopes to create 'intelligent' clothes over the next two years that will enable wearers to listen to the radio or talk on mobile phones without wires.

'We want to provide something fresh and exciting - to bring some fun into clothing,' said retail boss Roger Holmes. 'Imagine if you could put the hood up on your favourite jogging suit and listen to the radio.'

Marks has a team of 10 working on the project. The clothes would work with the aid of tiny microchips or special fibre circuits, invisibly woven into garments.

The technology may also put an end to 'grey knicker syndrome,' as the clothing could in future interact with a washing machine and tell it which cycle to use. The group is banking on strong sales of lingerie, gifts, food and homewear sales ahead of Christmas.

'It is turning into a convincing recovery story,' said retail analyst Nick Bubb, who has a price target of 365p. Many other analysts remain sceptical and will give Marks a tough grilling at a briefing today.