After years of success, the High Street store has been thrown into turmoil after it announced that profits had fallen by almost a quarter, the first drop in earnings for seven years.

Leading executives are now preparing to fight it out for the top job in the group.

Any management shake-up could signal a change of strategy at M&S, as it attempts to woo back customers from rivals.

All change?

The behind-the-scenes manoeuvrings at M&S's famous Baker Street headquarters and the shock fall in profits could herald a large shake-up at the group.

M&S is expected to cut prices of some of its mid-market clothing ranges, particularly womenswear which has fared badly in recent months.

It is also likely to introduce a wider range of cheaper clothes and revamp its stores.

A new leader at M&S may also prompt the group to undergo a complete face-lift as it tries to become more fashionable and shake off its dowdy image.

M&S is also looking to cut costs, cracking down on suppliers and buying more goods from abroad.

That would be bad news for the thousands of UK employees who work in the textile industry supplying the group's stores.

Campaigning for change

Keith Oates, Marks & Spencer's Deputy Chairman, is reported to have stepped up his campaign to become the next chief executive of the group by seeking support from other directors.

Sir Richard: Current head of M&S

However he faces stiff opposition from Peter Salsbury, Managing Director of M&S's merchandise business, who has become the favourite to take over.

The impending power struggle comes amid increasing pressure from the company's shareholders for Sir Richard Greenbury, M&S's formidable and combative chairman and chief executive, to release his stranglehold on the group.

Sir Richard is likely to relinquish some of his responsibilities next year by splitting his role as both chairman and chief executive.

Mr Oates, 56, is reported to have approached the group's non-executive directors to garner their support.

He launched M&S financial services business. He has also worked at Rolls Royce and IBM and was a former BBC governor.

But he is still considered by many as an 'outsider', being the first person to be appointed to the board of M&S directly from outside the group.

Peter Salsbury meanwhile is understood to be the favoured candidate of Sir Richard.

Other directors are likely to enter the fray as the battle hots up over the next few months.

M&S has been hit by the downturn in the consumer spending on the High Street and has been forced to shelve overseas expansion plans.