BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 

Tuesday, 3 October, 2000, 12:02 GMT 13:02 UK
M&S shares fall to 10-year low

Shares in Marks & Spencer have fallen below 2 for the first time in 10 years.

The collapse in the company's share price highlights continued uncertainty about the ability of the current management team to turn around the troubled retailer.

In the past two years, profits and sales have tumbled in an increasingly competitive UK retail environment.

In early trade, shares touched 194 pence, their lowest level since 1990.

The sell-off started on Monday when investment bank CSFB cut its profit forecast for the retailer by 6%.

Managing change

Part of the problem is perceived to be the company's recent shake-up in its management team.

The company announced in September it was appointing Roger Holmes, from Kingfisher, to be its head of UK retail.

Some shareholders are worried about his lack of experience in clothes retailing.

"They've got pretty much a new management team which has little clothing experience and you'd therefore have to say confidence levels are at an all time low in the stock," an analyst said.

Chief executive Peter Salsbury announced his resignation last month, after the retail giant's profits halved during his two years in the position.

He was replaced by chairman Luc Vandevelde.

Mr Vandevelde, a Belgian national, was brought in on a two-year contract in January, with a 2.2m golden handshake.

M&S is introducing a raft of measures, including an image makeover, to halt its decline.

The new look is being rolled out in 297 stores across the UK.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

18 Sep 00 | Business
M&S boss stands down
23 Sep 00 | Business
M&S 'to close 20 stores'
19 Jul 00 | Business
M&S: We'll be good again
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories