Marks & Spencer Falls To A Loss For The First Time In 94 Year History 

High street giant Marks & Spencer has fallen to a loss for the first time in its 94 year history after its stores were forced to close during pandemic.

The company fell to a £87.6 million pre-tax loss for the 26 weeks to September 26 - free-falling from a success in the corresponding period of 2019. 

It told shareholders it performed 'better than expected' during the first half, with revenue falling less than initially predicted.

It said revenue for the period slid by 15.8% to £4.09 billion after it was hit by lower clothing and home sales.

The clothing and home division saw sales dive 40.8% over the half-year, with a 21.3% decline in the second quarter as it benefited from the reopening of stores and strong online sales growth.

M&S reported that trading in October 'has continued at similar rates' to the second quarter, with clothing and home sales down 21.5% but food sales up 3%.

Its grocery business performed 'strongly' over the half-year, with like-for-like sales rising by 2.7% on the back of substantial growth from its Simply Food stores.

Meanwhile, the group also hailed strong growth in its Ocado Retail joint venture, which started delivering M&S food as the start of September.

It said the partnership has reported a 47.9% jump in sales, while profitability has also improved.

Marks & Spencer was created in Leeds in 1884 when Polish refugee Michael Marks opened his market stall.

It had its very own slogan based on the cost of items on sale: ‘don’t ask the price, it’s a penny’.

Ten years later when he went into partnership with Thomas Spencer, the iconic name was born.

During World War Two 16 Marks & Spencer stores were destroyed by enemy bombing.

But despite rationing being brought in, the firm was still able to turn a profit during the period.

It has become known as one of the UK's oldest and well-known brands and a marker for how the High Street is performing.

This latest trading update came as M&S continues to push forward with its Never The Same Again transformation programme.

It said the programme, which saw M&S slash 7,000 jobs in August will enable the business to emerge from the crisis in a 'stronger, leaner and more focused position'.

Chief executive Steve Rowe said: 'In a year when it has become impossible to forecast with any degree of accuracy, our performance has been much more robust than at first seemed possible.