Shares at Marks & Spencer feel to its lowest level yesterday since Philip Green’s bid approach in May this year, amid fears that the retailer would have to add further discounting to shift surplus stock before Christmas.

The retailer plans to slash 20% off prices tomorrow, which will be the second time in three weeks that it has implemented big discounts.

A shopping survey by CBI yesterday indicated that retailers believe the outlook for Christmas is gloomy, following the worst sales figures recorded for November in 10 years.

Analysts Matthew McEachran said the M&S food halls were facing additional competition from Waitrose and Tesco, and he reduced his profit forecast by £30m for this year, reported The Telegraph today.

Shares in the company closed 4.75p lower at 328.25p.