Retail firms give spending snapshot

Retail firms, inlcuding M&S, will give a snapshot of high street trading conditions this week

Retail firms Marks & Spencer and Next will give a snapshot of high street trading conditions on Wednesday as the sector gears up for the crucial Christmas period.

M&S will no doubt be trying to steer the focus away from its corporate governance and succession issues with half-year profit figures.

The group has been under scrutiny over its plans to find a candidate to replace Sir Stuart as the new chief executive next year.

The relationship between M&S and its shareholders has been under intense strain since Sir Stuart was appointed executive chairman - combining two roles in breach of corporate best practice - more than a year ago.

Fellow retail giant Next updates the market on sales performance in the 14 weeks to October 31 as it also enjoys a resurgent performance.

It upped its annual profits forecast for the third time in five months in September as it thanked better ranges and a welcome improvement in consumer confidence.

The group posted a 6.9% hike in interim pre-tax profits to £185.5 million after a better-than-expected performance in the six months to July. However, recent retail sector sales statistics have been mixed and analysts will be keen to hear from the players themselves how consumer spending is shaping up ahead of the festive season.

Elsewhere, Primark parent Associated British Foods reports full year figures on Tuesday amid high expectations after it said growth at the fashion chain was set to boost second-half earnings.

The group - which also owns the brands Twinings, Kingsmill and Silver Spoon - said like-for-like sales rose 7% over the financial year to September 12, driven by strong trading in the UK.

Primark, the discount fashion chain which became known for its super-cheap clothes long before the arrival of the credit crunch, has seen strong expansion in the UK and Spain in recent years. Better weather and a host of new openings in the second half had helped the chain as it was already capitalising on a consumer search for value.