M&S chief delivers another rise in sales as pay grumbles grow

Marc Bolland was today facing down objections from retail shareholders about his pay, but was at least able to offer some evidence that he may be worth it.

The Marks & Spencer chief executive unveiled another rise in sales this morning, up 3.2% in the 13 weeks to July 2.

He is on a £15 million deal to revive the retailer, a pay package that some see as a further sign that executive pay has spun out of control.

At the annual meeting today, shareholders were expected to voice disapproval, though the large City institutions that hold stock on behalf of pension funds were likely to have stayed mute as usual.

Bolland's plan is to improve the food arm and expand overseas. So far, that approach seems to be working.

Food sales are up 5%, while general merchandise is up just 0.3%, a sign that consumers are buying fewer clothes, while still intending to eat well.

Bolland said: "Against the uncertain economic backdrop, we are focused on trading through the short term while building for the long term growth of the business."

It's not clear how short M&S expects this term to be - retailers have been "cautious" about the outlook for at least three years.

M&S reckons its share of the clothing market is rising, even if sales are not.

It now has 11.7% of the market after 17 consecutive monthly gains.

Analysts think M&S's market position is helpful, appealing as it does to older people with money in the bank.

Rahul Sharma at Neev Capital says of recent sales figures from retailers: "The data is aligned along demographics, with retailers selling to the lowest income demographic the hardest hit, and those servicing the wealthy doing very well."