Marc Bolland will step down as the boss of retailer Marks & Spencer in April, bringing an end to a turbulent tenure in which he modernised the 132-year-old British institution but failed to bring its clothing back into fashion.

Mr Bolland, chief executive for six years, will be succeeded by company veteran Steve Rowe in arguably the most prestigious job in British retail.

Londoner Rowe (48) faces the task of finding the formula that eluded Mr Bolland; he must lure shoppers back to its clothes, dispelling its outdated image of recent years, and seek to match the success enjoyed by its upmarket food business.

The 56-year-old Dutchman announced his departure after yet another poor Christmas showing for the firm’s general merchandise division – clothing, shoes and homeware – that saw sales slump.

The division accounts for two-thirds of group profit so its success or failure is likely to determine Mr Rowe’s own fortune as CEO of a company where he has worked for more than half his life.

Shares in M&S rose 19 per cent under Mr Bolland’s tenure, outperforming the 6.5 per cent gain recorded by the overall FTSE 100 blue chip index but way behind the 213 per cent gain delivered by rival Next.

M&S shares were down 1.2 per cent at 433p at lunchtime yesterday.

In the third quarter, which includes the Christmas trading period, like-for-like sales at the general merchandise division fell 5.8 per cent. The company said unusually warm weather deterred people from buying winter clothing – a factor also cited by Next for its poor Christmas – but also admitted to poor availability of some items.

M&S did nudge up its margin guidance for the division, reflecting a decision to hold back on discounting.

By contrast, M&S said its food business enjoyed its best ever Christmas.

Like-for-like sales were up 0.4 per cent, a 25th straight quarterly rise. – (Reuters)