M&S crisis a boost for Bostock's ambitions

The M&S director of clothing was already regarded as a front-runner to replace Sir Stuart Rose when he steps aside in two years' time.

Steve Esom, the food director who was fired today after less than a year in the job, was brought in from Waitrose in a move seen as a coup for M&S as it sought to expand its food arm.

In its trading update today - effectively a profit warning - M&S claimed to be hanging on to market share in areas other than food, hence Esom's firing.

Defending the move, Sir Stuart said: "We need horses for courses. He came into the business at a time when we were in a different position. We had to make a difficult decision. It is unfortunate, but he will not be with us any more."

In the statement to the City, M&S said it "needed to increase the pace of change on a number of operating and trading initiatives".

John Dixon, director of Home sales and the internet business M&S Direct, becomes the new food director.

Bostock, 50, is now one of the few serious internal candidates alongside finance director Ian Dyson, though Sir Stuart says succession planning is not a priority given how difficult trading conditions have become.

M&S sparked a huge row with the City when it unveiled plans to promote Sir Stuart from chief executive to executive chairman, a move that some investors said gave him too much power.

The company said like-for-like UK sales in the 13 weeks to 28 June fell 5.3%. General merchandise sales were down 6.2% and food down 4.5%.

M&S shares crashed on the news, shedding 68p, or 22%, to 250p.

In May, M&S reported profits for the previous year of £1.1 billion, but there were already signs that the Rose-revolution was in difficulty. City analysts think it will not make much more than £850 million next year - forecasts that could be slashed again.

Analysts Nick Bubb at Pali International said: "It is very disappointing that clothing is doing even worse than food, so it seems a tad harsh that it's the managing director of the food division that has been sacked."

Analysts are increasingly concerned

about the level of the debt M&S is carrying on its books.

It will rise to £3.5 billion by the end of the year, roughly equivalent to the value of its entire property portfolio.

And Mrek & Spenver is not predicting an improvement in consumer sentiment any time soon.

"We expect market conditions to continue to remain difficult and we are managing our business accordingly," the company said.

"Four years ago M&S was a weak business in a strong market. Today we are a strong business in a weak market."