Sir Stuart Rose has reshuffled his senior management team following Mark & Spencer’s 39.9% slump in full-year pre-tax profits.

Steve Rowe is to be put in charge of the online business, while Kate Bostock, head of fashion, has been given additional responsibility for homewares.

Carl Leaver, who had led the international division, homewares and e-commerce businesses, is to leave by mutual agreement in the next three months. Leaver had previously been touted as a potential successor to Rose, who is expected to leave the business within the next two years.

M&S shares closed down 27.5p, or 8%, at 311.25p last night amid signs that the City was losing faith in Rose’s turnaround plans and his ability to secure an orderly succession.

Meanwhile, M&S has today begun its three-day penny bazaar as part of its 125th birthday celebrations. M&S is selling a range of 20 products, which include retro sweets and drinks, for just 1p.

Model Twiggy, who fronts M&S's advertising campaigns, will open the penny bazaar at the company's flagship store in Oxford Street, London. The bazaars take place at more than 300 main M&S stores.