LONDON -- A chilly autumn has already set in at Marks & Spencer.
The British retailer, which is attempting to retool its image and claw back market share following weak performance and a takeover attempt by retail tycoon Philip Green in July, said last week that sales in the 10-week period ended Sept. 18 fell by 2.7%.
The only product category that grew in the 10-week period was food, where sales rose 2.9%. The company reported percentage changes only, and will release a trading update for the second quarter on Oct. 12, and interim results for the first six months on Nov. 9. The competitive pressure facing M&S was further underscored last week when Tesco, the U.K.'s largest food retailer, which is selling more and more apparel, reported a 24% increase in pretax profits to 822 million pounds, or $1.46 billion, on a 12.2% rise in sales to 16.5 billion pounds, or $29.4 billion, for the first half. Apparel sales alone climbed 39%, Tesco said.
M&S issued the sales update in conjunction with the details of its proposed 2.3 billion pound, or $4.1 billion, tender offer to shareholders. As reported, M&S management proposed the offer as a sweetener for shareholders in its defense against Green's advances over the summer.
Regarding the tender offer, M&S said tenders will be accepted in the range of 3.32 pounds to 3.80 pounds, or $5.90 to $6.80, per share, and the offer will be structured using a strike price mechanism.
