Is M&S right to hope for the best?

However, there is something to be said for “the glass is half full” attitude he propounded on today’s BBC News programme.

As negative sentiment in the City has eaten away at share prices and newspaper headlines at consumer confidence, Rose really needs to rally his troops and consumers with a vigour befitting a business in the midst of an economic slump.

And today’s trading update provided reason for Rose to be cautiously positive.

A 6.4 per cent fall in like-for-like sales in non-food at the retailer has generated mixed feelings among City observers who feared worse. A drop of 3.5 per cent in total clothing sales over the past 13 weeks is not unrespectable.

However, as M&S revealed that it is to slash capital expenditure, it is the customer that Rose really needs to charm.

Cutting costs will please the City, but will it please customers if, as a result, service, quality of products and shopping environment is left wanting?

Rose is right that customers are mindful about how they are spending their money – at the moment, most are probably more concerned about where they deposit it – but what is most important is that they feel they are getting true value, which does not mean the cheapest price.

But where Rose is confident is that M&S’ autumn collections will be well received and that it is maintaining clothing market share.

It is, for now, unclear where the outlined cost savings are to be made and whether M&S’ store modernisation will slow as a result.

But Rose said that 80 per cent of stores will have been refurbished by next year and that he is turning to investing in logistics to set the business up for the next decade.

Rose really has only until the summer of 2011 to shape his legacy, but the outlook today feels more than positive in comparison with its shock profits warning.

M&S will “cut its cloth according to our means and give our customers fantastic clothing, give our customers fantastic quality and innovation in foods and hope for the best” said Rose.

Let’s hope that hoping for the best is good enough.

A crucial time for Ted Baker

A retailer that has traditionally proved best in class is Ted Baker. But is its quirky crown likely to slip?

The fashion brand today announced that it had taken a hit over the past fortnight from the banking crisis and that it is cautious about its second half outlook.

With two thirds of its profits to be made in the second half, Ted Baker cannot afford to rely on its off-the-wall reputation alone to see it through its key time. Ted Baker always draws mixed – and quite strong – opinions among shoppers and retailers as to its strengths and potential weaknesses.

In this environment customers may find it harder to justify paying its higher end prices.