Marks & Spencer revealed another rise in sales despite wider concerns over the effect of the soaring cost of living on the high street. Photograph: Charlotte Ball/PA WireUK clothing and food retailer Marks & Spencer on Wednesday reported a 7.8 per cent decline in annual profit, as strong sales growth was offset by inflationary pressures and the impact of Brexit-related costs on the Irish food business.
The retail giant said that it spent £700,000 on “store impairment testing” in Ireland in the year to the end of April, as part of an initiative across its business aimed at identifying stores where current and anticipated future performance “does not support the carrying value of the stores”.
In Ireland, where M&S in February reported a 3.5 per cent decline in food sales, the retailer said that “robust” clothing and homeware sales saw overall Irish sales increase 15.1 per cent in the year. This was despite the continued impact of “Brexit related costs” on its Irish food business”. New import rules and additional paperwork associated with Brexit initially forced the UK retailer to cut 800 product lines in its stores in the Republic, including such items as free-range chicken, orchids or goods containing Parmesan Reggiano.