The Share Centre currently list Marks and Spencer as a ‘hold'

Graham Spooner, investment adviser at The Share Centre explains why despite reporting a 2.8% rise in like-for-like sales in Q3, Marks and Spencer remains a ‘hold' for investor. 

"Marks and Spencer fared better than other retailers over the Christmas trading period and produced a solid set of results.

"Group sales increased 4.0% in the final quarter of 2010. General Merchandise sales rose 4.4%, clothing increased 4.4% and food sales improved 3.5%. And figures would have been better without the disruption caused by the December's snow and icy weather.

"We remain cautious of the retail sector as a whole. The majority of retailers, including Marks and Spencer's, continue to show concern for 2011 citing the rise in VAT, the impact of the Government spending cuts, and higher commodity prices.

"This continued pressure on the sector, teamed with the possibility that shoppers may take a breather from the high street in the first few months of the year cause us to keep Marks and Spencer as a ‘hold' for investors."