Embattled department-store giant Marks & Spencer today said it would be moving its corporate headquarters to west London as its profits slumped by close to Stg£80 million.
The retailer is moving its head office to Paddington, west London, after 44 years at Baker Street in London's West End.
Marks & Spencer chairman and chief executive Luc Vandevelde said the move - to a 240,000 sq ft site - would help to encourage the ``creativity and innovation'' of the retailer's staff.
The move is planned for mid-2003. Marks & Spencer reported pre-tax profits, before one-off costs, of £480.9 million in the year to the end of March.
This was better than some in the City had expected, but still some way below the previous year's £557 million.
M&S recorded profits of more than £1 billion in 1998.
Mr Vandevelde said M&S had been hit by ``unacceptable'' adult clothing sales, but the retailer ``had many strengths to build upon''.
Overall group sales, including M&S' European stores and its US subsidiaries, were £8.1 billion, down from £8.2 billion the year before.
Clothing, footwear and gift sales were down 5.5 per cent compared to the equivalent 52-week trading period last year, while food and home sales rose by 3.7 per cent and 11.5 per cent respectively.
Total like-for-like sales, which strip out income from new stores, fell by 2.6 per cent.
Three non-executive directors are to leave the M&S board - Sir Michael Perry, Sir Ralph Robins and Sir David Sieff, chairman of the British Retail Consortium.
PA