THE changing fortunes of one of Britain's most famous retailers were thrown into the spotlight once again by another bombshell announcement to the City.

Marks & Spencer had pinned its hopes on a radical cost-cutting programme coupled with an overhaul of its clothing division in the hope of regaining its standing on the High Street.

Despite a mini renaissance, its financial fortunes once again appeared to be plummeting as even its key food division showed the strain.

Roger Holmes, M&S chief executive, pledged to take action on a number of fronts in a desperate attempt to prove that the latest round of poor trading figures was nothing more than a temporary blip.

Fresh from poor clothing sales over the Christmas season, M&S added to the gloom surrounding its recent performance with a 3.4 per cent decline in like-for-like sales for the 11 weeks to March 27.

Worryingly for M&S, the food department sales were down 1.4 per cent.

In the City, analysts said management was under pressure to show the recovery that started in 2002 had not run out of steam as competition increased on the high street.

Nick Bubb, of Evolution Beeson Gregory, said: "M&S was expected to report poor fourth-quarter sales, but the news is even worse than expected.

"The loss of market share in food is nearly as alarming as the loss of market share in clothing."

Despite the latest disappointment, M&S said cost controls meant it was still likely to meet City results forecasts, which are for profits in the year to April 3 of about £760m - up from last year's £713.7m.

Priorities highlighted by the business include the need for greater consistency in the appeal of womenswear, more inspirational stores and improvements to the way its stores, head office and supply chain operate.

Former Selfridges boss Vittorio Radice, who recently became executive director for general merchandise, will lead the fight to win back clothing sales.