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M&S records first ever LOSS in its 94-year history with £87m slump into the red after impact of Covid hammered trading of retailer that even managed to turn a profit during World War Two

High street giant Marks & Spencer has fallen to a loss for the first time in its 94 year history after its stores were forced to close during the pandemic.

The company fell to a £87.6 million pre-tax loss for the 26 weeks to September 26 - free-falling from a success in the corresponding period of 2019. 

It comes after the retailer signed a £750 million deal last year to own half of Ocado's retail business.

M&S launched its products on the delivery website at the start of September and saw their online sales soar. 

It marks a major turning point for the retailer, which launched in the 1880s and continued making a profit throughout World War II when it sold food directly to customers from food trucks.  

Marks and Spencer, like this store in Shrewsbury, has reported heavy losses after Covid-19

Marks and Spencer, like this store in Shrewsbury, has reported heavy losses after Covid-19

It told shareholders it performed 'better than expected' during the first half, with revenue falling less than initially predicted.

It said revenue for the period slid by 15.8% to £4.09 billion after it was hit by lower clothing and home sales.

The clothing and home division saw sales dive 40.8% over the half-year, with a 21.3% decline in the second quarter as it benefited from the reopening of stores and strong online sales growth.

M&S reported that trading in October 'has continued at similar rates' to the second quarter, with clothing and home sales down 21.5% but food sales up 3%.

Its grocery business performed 'strongly' over the half-year, with like-for-like sales rising by 2.7% on the back of substantial growth from its Simply Food stores.

The clothing and home division saw sales dive 40.8% over the half-year up until now

The clothing and home division saw sales dive 40.8% over the half-year up until now

7,000 M&S jobs to go 

Marks & Spencer announced in August it would axe 7,000 jobs as part of a further shake-up of its stores and management in the face of the coronavirus crisis.

The London-based retail giant revealed the bulk of the cuts would be made across its stores, hitting around 12 per cent of its 60,000 shop-based staff, as well as a smaller number of support centre and regional management workers.

M&S, which employs 85,000 people worldwide, expects a 'significant' number of roles will be cut through voluntary departures and early retirement.

The group said it would also create some jobs through investing further in online warehousing and its new ambient food warehouse.

M&S had already begun a significant restructuring before the pandemic hit, shutting under-performing stores and boosting its online sales.

Meanwhile, the group also hailed strong growth in its Ocado Retail joint venture, which started delivering M&S food as the start of September.

It said the partnership has reported a 47.9% jump in sales, while profitability has also improved.

Marks & Spencer was created in Leeds in 1884 when Polish refugee Michael Marks opened his market stall.

It had its very own slogan based on the cost of items on sale: ‘Don’t ask the price, it’s a penny’.

Ten years later when he went into partnership with Thomas Spencer, the iconic name was born.

During World War Two 16 Marks & Spencer stores were destroyed by enemy bombing.

But despite rationing being brought in and supply lines being interupted, the firm was still able to turn a profit during the turbulent period.  

They reacted to the situation by selling food direct to the customer from their delivery trucks when tensions were high, and opening cafes in more than 80 stores as rationing did not apply to restaurants.   

They also developing a line of clothing that was nicely designed, but was simple and utalitarian. 

M&S also encouraged their workers to go out and train to help the war effort.

Staff trained as fire and air raid wardens or set up soup kitchens, while others volunteered in hospitals or fundraised for the war effort. 

M&S Adverts featuring Line of Duty star Vicky McClure have not stopped the companys share price from falling

M&S Adverts featuring Line of Duty star Vicky McClure have not stopped the companys share price from falling

Colin the Caterpillar cake has been a popular M&S product over the years

Colin the Caterpillar cake has been a popular M&S product over the years

Simon Marks, M&S Chairman at the time and son of our founder, later helped form the RAF Cadets as many of the brand's staff served with the RAF during the war.

The chain has come a long way from selling directly from food trucks during the turbulent period of WWII, responding to the current coronavirus crisis by encouraging customers to book a timed slot to enter the chain's food halls.

The scheme is available to use across all M&S's 566 food halls and larger stores containing food halls. 

This enables them to skip the queues seen outside supermarkets during the first lockdown as the UK enters a second nationwide shutdown. 

M&S's Never The Same Again post-lockdown programme had seen 7,000 jobs axed in August

M&S's Never The Same Again post-lockdown programme had seen 7,000 jobs axed in August

The chicken kievs sold by M&S were a huge hit in the 1980s and helped the chain boost their profits

The chicken kievs sold by M&S were a huge hit in the 1980s and helped the chain boost their profits

The chain is not only known for its food but for its clothing - with their underwear lines pulling in a huge amount of trade over the years. Pictured: Joanna Lumley (right) for an M&S campaign

The chain is not only known for its food but for its clothing - with their underwear lines pulling in a huge amount of trade over the years. Pictured: Joanna Lumley for an M&S campaign 

The best selling M&S products over the decades

M&S opened as a market stall in 1884, and over the years their best selling products have changed significantly. 

Here are some of their top selling products: 

1930s: Sandwiches 

1960s: Fresh chilled chicken 

1970s: Boil-in-the-bag and foil-wrapped convenience foods

1980s: Chicken Kiev

1990s: Percy Pigs and Colin the Caterpillar chocolate cake 

2000: Melt in the middle chocolate pots 

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The best selling M&S products over the decades

M&S opened as a market stall in 1884, and over the years their best selling products have changed significantly. 

Here are some of their top selling products: 

1930s: Sandwiches 

1960s: Fresh chilled chicken 

1970s: Boil-in-the-bag and foil-wrapped convenience foods

1980s: Chicken Kiev

1990s: Percy Pigs and Colin the Caterpillar chocolate cake 

2000: Melt in the middle chocolate pots 

It has become known as one of the UK's oldest and well-known brands and a marker for how the High Street is performing.

This latest trading update came as M&S continues to push forward with its Never The Same Again transformation programme.

It said the programme, which saw M&S slash 7,000 jobs in August will enable the business to emerge from the crisis in a 'stronger, leaner and more focused position'.

Chief executive Steve Rowe said: 'In a year when it has become impossible to forecast with any degree of accuracy, our performance has been much more robust than at first seemed possible.

'This reflects the resilience of our business and the incredible efforts of my M&S colleagues, who have been quite simply outstanding.

'But out of adversity comes opportunity and, through our Never The Same Again programme, we have brought forward three years' change in one to become a leaner, faster and more digital business.

'From launching M&S Food online with Ocado, to establishing an integrated online business division, 'MS2', to step-change growth, we are taking the right actions to come through the crisis stronger and set up to win in the new world.'

John Lewis will axe 1,500 head office staff while Lloyds is set to lay-off 1,070 employees

John Lewis announced today it is to cut 1,500 head office jobs in an effort to bolster the business in the devastating coronavirus pandemic. 

Lloyds Banking Group also said it plans to cut another 1,070 jobs as it continues a major restructuring programme.

The John Lewis Partnership revealed the cuts as part of the next phase of its five-year plan to return it to sustainable profits by 2025.

It is the latest blow of the high street bloodbath consuming retail in the wake of the Covid-19 outbreak.

John Lewis - famous for its Christmas ads - is widely seen as a benchmark for High Street performance in the UK. 

But it received a serious blow earlier this year after its Waitrose arm was ditched by Ocado in favour of Marks & Spencer. 

Lloyds said its latest restructuring move will result in a net reduction of around 740 roles, as it will also create a further 330 positions across the business.

It is the latest set of redundancies after the group restarted its major restructuring programme following the pandemic.

In September, it said it would slash 865 jobs mainly in its insurance, wealth and retail teams. 

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John Lewis will axe 1,500 head office staff while Lloyds is set to lay-off 1,070 employees

John Lewis announced today it is to cut 1,500 head office jobs in an effort to bolster the business in the devastating coronavirus pandemic. 

Lloyds Banking Group also said it plans to cut another 1,070 jobs as it continues a major restructuring programme.

The John Lewis Partnership revealed the cuts as part of the next phase of its five-year plan to return it to sustainable profits by 2025.

It is the latest blow of the high street bloodbath consuming retail in the wake of the Covid-19 outbreak.

John Lewis - famous for its Christmas ads - is widely seen as a benchmark for High Street performance in the UK. 

But it received a serious blow earlier this year after its Waitrose arm was ditched by Ocado in favour of Marks & Spencer. 

Lloyds said its latest restructuring move will result in a net reduction of around 740 roles, as it will also create a further 330 positions across the business.

It is the latest set of redundancies after the group restarted its major restructuring programme following the pandemic.

In September, it said it would slash 865 jobs mainly in its insurance, wealth and retail teams. 

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