Marks & Spencer staff are expected to receive an overall bonus share that will total up to £81m after the largest clothing retailer in Britain reported a 4.6% increase in year on year profits stating that trading is satisfactory.
However, chairman for M&S, Sir Stuart Rose, stated that any consumers that are worried about the Budget on June 22nd should rest assured that the company will maintain cautious for the year that is ahead.
Yesterday, Chancellor George Osborne, outline a new plan that included £6.2b of spending cuts and warned that there may be more cuts in the near future as he takes action to reduce the massive deficit of Britain.
Profits of the company before property and tax disposals at M&S increased from £604.4 to £632.5m over the last year back to March 27th. There was a small drop in pre-tax level profits, but it was a much smaller drop compared to the billion pound drop seen in 2007-08.
This past Friday Investec Securities released a manifesto that outlined how M&S needs to proceed in order avoid receiving a negative return in profits.
In the document, the retailer is said to need to increase the speed of its supply chain and create a new range for the high street that contains something for everyone, and develop an online way to market a food service.
The broker service stated that the challenge facing M&S is to increase growth that is sustainable instead of growth that follows a circular pattern.