Marks & Spencer CEO Marc Bolland to Step Down

LONDON—Marks & Spencer Group PLC said Chief Executive Marc Bolland will step down later this year as the British retailer reported slack sales of clothing and other nonfood items in the weeks before Christmas.

Mr. Bolland will be replaced by Steve Rowe, executive director of M&S's nonfood general merchandise division, on April 2, the company said on Thursday.

The shake-up in the British retailer's executive suite takes place against a backdrop of competition on the U.K.'s high streets made worse in recent weeks by warm weather which curbed demand for winter clothing.

M&S reported a 3.7% rise in sales for the 13 weeks ended Dec. 26 compared with the same period last year, but comparable sales, a measure which strips out factors such as new stores, were up just 0.4%, hit by a slump in demand for nonfood items.

Sales of general merchandise, including clothing and products for the home, fell 5%, or 5.8% on a comparable basis, a decline the company attributed to unseasonable winter weather and stock availability.

The disappointing nonfood performance comes after fellow clothing retailer Next PLC said earlier this week its sales growth has been below previous guidance as warm weather resulted in a disappointing performance over Christmas.

On the bright side, M&S said its margins will be at the top end of previous expectations after it held back from heavy discounting in nonfood sales.

Write to Rory Gallivan at rory.gallivan@wsj.com

(END) Dow Jones Newswires

January 07, 2016 03:25 ET (08:25 GMT)

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