SHARE OF THE WEEK: M&S to shine light on state of High Street

Marks & Spencer will shine a light on the state of the High Street ahead of the crucial Christmas season next week.

Figures from last week showed that Next and Sainsbury’s both went through the doom and gloom of pressure on retailers, with sales of food, clothing and merchandise holding up surprisingly well into the fall.

Investors hope a semi-annual update from the 138-year-old retailer on Wednesday will tell a similar story.

M&S has revamped its food offering under the leadership of boss Stuart Machin, who has been employed since May.

The company is also benefiting from a clothing overhaul led by co-chief Katie Bickerstaffe.

But the turnaround plan, which has seen green shoots under former boss Steve Rowe, has been thrown off course by the rising cost of living. Shares have halved this year, making the company worth just over £2 billion.

And analysts fear M&S could lose shoppers to cheaper rivals as households tighten their belts. There are also fears that the sale of household goods will come under pressure as consumers in trouble put off purchases amid the tightness.

But the main focus will be on the outlook for the coming months and next year.

Shore Capital retail analyst Clive Black thinks M&S will have done well in food and apparel for the six months to October. But he said: “The challenge is in the next six to nine months, with interest rates rising and the chancellor’s statement in two weeks that will likely raise taxes and cut spending.”