Tough week ahead for M&S chief

MARKS & Spencer boss Roger Holmes faces tough questions this week from City investors desperate to stop the rot.

Full-year results, due on Tuesday, are expected to show profits of £755m, up from £721m last year, but the retailer's prospects have been hit by a sharp decline in sales last month.

Moreover, the Sunday Times reports that according to internal figures it has seen, the slump in food sales at Marks & Spencer has accelerated in recent weeks.

The revelation will heighten fears of serious problems within the food division and raise questions about the abilities of Maurice Helfgott, who was appointed head of food in November 2003.

The firm's attempt to grab the youth market with a new fashion label, Due, has also come under attack from many observers.

M&S is also facing a dangerous power vacuum at the top after chairman Luc Vandevelde announced his retirement earlier this month.

Hopes that former Vodafone chief Chris Gent would step into the breach were dashed when he ruled himself out.

And it is thought that another leading candidate for the role, former Arcadia boss Stuart Rose, has been ruled out by the M&S board.

Holmes, whose own job is regarded as being under threat unless he can turn M&S around, is expected to announce a number of changes to the store's clothing lines in an effort to reverse the sales decline.

Marks & Spencer shares closed at 279.25p on Friday, down 2.25p on the week.