Marks & Spencer, Britain's largest clothing retailer, reported like-for-like sales at its UK stores fell 2.2 per cent in the third quarter, adding to signs of a slowdown in British consumer spending.
The figures significantly undershot already lowered forecasts from analysts and follow a series of gloomy updates from British retailers concerning crucial Christmas trading.
Chief Executive Stuart Rose, who has spearheaded a turnaround of the retail chain in the past two years, said market conditions became more challenging through November and December.
General merchandise fell 3.2 per cent and food fell 1.5 per cent, Marks & Spencer said in a statement.
Figures for the group's Irish operations were not available.
"We expect trading conditions to remain tough throughout 2008. We are well positioned with a strong product offer and better than ever values across our business," Mr Rose said in the statement.
British retail sales grew at their slowest pace since March 2006 in December, making it the worst Christmas for retailers in three years, the British Retail Consortium said yesterday.
