Marks and Spencer is expected to cut its growth target when it reports its preliminary results next week.

Eighteen months ago, chief executive Marc Bolland set the UK retailer the ambitious target of increasing its sales from GBP9.7bn (US$15.58bn) in 2011 to GBP11.5-12.5bn by 2014. Sales expansion was to be generated through growth at its UK and international stores as well as online.

A weak fourth-quarter sales update last month could have put these targets into question.

In the fourth-quarter, M&S booked a significantly improved performance from its food division, which saw a 3.1% increase in revenue. And this performance looks set to continue as the firm focuses on innovation to attract more shoppers. The company has looked to shrug off its pricey image through various promotions, notably 'dine-in', to boost its food sales. And, on Friday, last week M&S launched a 'value' food range, as it attempts to take a bigger share of the weekly shop.

However, the lion's share of M&S sales come from its clothing offering, where availability issues in women's wear and poor consumer sentiment dented last quarter's numbers.

Over the weekend, reports have claimed that Bolland could be forced to climb down from his three-year sales targets, which would see revenue rise by around GBP3bn. On Tuesday week (22 May), Bolland is expected to confirm that full-year sales have risen by only GBP200m to about GBP10bn, the Daily Mail reported.

Somewhat predictably, Marks and Sparks' corporate press office declined to comment on the speculation, insisting any update would come out with its interim results.

However, one industry watcher told just-food that although in the longer-term M&S's clothing sales are expected to benefit from demographic trends such as the ageing population, the group's shorter-term targets now seem "unlikely" to be met.

Although many of these issues were flagged when the company released its fourth-quarter numbers, the market has reacted negatively to the reports and shares in the retailer dropped 11 pence this morning, to 349 pence at 11.51am. 

The latest Asda Income Tracker certainly made for some depressing reading today (24 April), revealing that the average UK family has continued to see its disposable income drop - down 6.5% on the year. 

According to the supermarket group, family spending power fell by GBP10 (US$16.13) a week in March, leaving the average UK family with GBP144 of weekly disposable income after bills and taxes. This, the AIT said, is the lowest level since November 2008. 

Commenting on the findings, Asda CEO Andy Clarke said it is "worrying" that this drop comes at a time when the cost of essentials is rising "increasing the demands on family budgets and putting pressure on income growth".

The consumer price index, the official barometer measuring the cost of living in the UK, was again up in March, rising 3.5%. This is well above average earnings growth, which is up just 1.6%. 

Meanwhile, the spectre of high unemployment levels is also taking its toll.

Charles Davis, macroeconomics chief at CEBR, said that even as the cost of essentials looks set to fall back, "tough conditions" in the labour market look set to prevail. 

"Average earnings growth is expected to trail inflation in 2012, keeping pressure on household incomes. As such we are likely to see continuing declines on the AIT over the coming months," he concluded. 

So, what does all this doom and gloom mean for the food industry? 

In a timely announcement today, the latest Kantar figures highlighted the 'bottleneck effect' that has seen sales gains at the top- and bottom-end of the market, at the expense of the middle-ground. 

The discounters - Aldi, Lidl and Iceland - are posting sales growth well ahead of the rest of the sector. Meanwhile, high-end retailer Waitrose appears to be attracting customers who are eating out less, but still looking for that taste of luxury. This trend is also witnessed by the growth of 'best' lines at mainstream supermarkets. 

However, if consumer confidence continues to be squeezed, we could well see the development of an even more price-conscious consumer as the definition of value focuses in on price and less emphasis is placed on quality. Whether this happens will largely depend on how deeply the country's middle-class consumers feel the squeeze in the coming months. 

We will be devoting some in-depth analysis to the issue later this week, so watch this space for more on the outlook for the country's discount retailers.  

Target's plans to expand in Canada are to be examined by the Federal Government. 

Target announced in January 2011 a deal to acquire the leases on up to 220 Zellers stores from Hudson's Bay Co. The firm has since purchased the leases of 189 sites currently operated by Zellers and indicated that it plans to open up to 150 stores in Canada, the majority of which are set to open in 2013. 

According to Canadian reports, regulatory authorities have launched a review of this move under the Investment Canada Act. They will examine whether Target's plans to sell "cultural content" could reduce the amount of Canadian cultural content on store shelves - in the form of DVDs, CDs and books - and hurt domestic publishing houses. 

While the review will not prevent Target's expansion, according to the Edmonton Journal the group could be required to increase the number of Canadian authors and musicians gracing its shelves, as well as purchasing imports through Canadian-owned publishing houses, among other measures. 

The news is a reflection of the Canadian obsession with, well, being Canadian and differentiating itself culturally from its larger and more powerful neighbour. Nevertheless, any hurdle in the way of Target's expansion north of the boarder - and significantly any negative press surrounding it - will surely come as welcome news to the country's supermarkets. 

Target's Canadian stores will have some significant differences from the company's US outlets. The average converted Zellers store will have about 100,000 sq ft of selling space, which is about one-third smaller than the average Target store in the US. And, while the company's focus on non-food means that it cannot be classed as a supermarket, it intends to compete for grocery dollars, stocking fresh and ambient food products at all outlets (compared to only carrying fresh at its Super Target and Pfresh in the US.) 

With far fewer SKUs, Target's food range will not attempt to duplicate a supermarket. However, Target has taken aim at core-item sales it seems. In the firm's fresh aisles, consumers should expect a good range of basics (think every day fruit and veg, bakery items, dairy and popular meat products). 

And, at least in the US, Target has a better reputation for quality in fresh than fellow compatriot Wal-Mart while also maintaining a value positioning - factors that are sure to make the retailer a formidable competitor. 

So, what can Canadian supermarkets do to fend off Target's incursion on their turf?

Certainly, emphasising their wider range and food speciality is an obvious move. However, as this latest development shows, the virtue of being Canadian can also go a long way in Canada. Supermarkets should therefore look to highlight their local and regional sourcing credentials and emphasise any ties to the communities in which they are located.  

Every once in a while, I find my inbox to contain a press release that manages to stop me in my tracks. And that is just what happened today (29 March), when I saw that J&D's Foods has launched a bacon coffin. 

It took me a few moments to get my head around exactly what this means. No, not a coffin for bacon, a bacon-themed coffin for deceased bacon lovers. 

The release reads: "You ate bacon, you decorated your body with bacon, your car with bacon and your home with bacon. And now, you can peacefully rest wrapped in bacon."

Now it is possible I need to expand my social horizons, but I have never come across anyone who "decorates" their body, car or house in bacon. Or any other food for that matter. 

Toning down the crazy just a notch, it turns out that bacon coffins are "finished with a painted bacon and pork shading" and "accented with gold stationary handles". 

Makes a little more sense. Even so, while I love a bacon sandwich as much as the next person, I find it hard to imagine a great demand for this - even among the most die-hard bacon lovers.  

Two of Canada's premier business clans, the McCains and the Sobeys, have joined forces to form SeaFort Capital, a new private-equity investment vehicle. 

Scott McCain, COO of Maple Leaf Foods and the son of the late Wallace McCain who co-founded another Canadian food giant,McCain Foods, will sit on the board of the new venture brushing elbows with Donald Sobey, who helped build the Sobeys grocery chain, and his son Rob Sobey, who also sits on the retailer's board and is the chief executive of Lawton's Drug Stores. 

According to its website, the new investment firm will target "old economy" businesses with earnings of between C$2m (US$2m) and C$10m. 

"Our preference is for companies that have a strong tangible asset base," the company said. 

Canadian reports have suggested the firm will target family-owned companies in smaller cities and towns across Canada, in particular providing an alternative for entrepreneurs preparing to retire without anyone to hand their businesses on to.  

With the strong grounding that some of its most high-profile investors have in the food and retail sectors, it seems likely then that we could see SeaFort increasing the level of private-equity activity in this sector. 

However, perhaps this represents a drop in the ocean. According Tom Lindsay, co-founder of M&A advisors Spayne Lindsay, international M&A activity in the food sector is likely to be driven by higher levels of PE investment in the coming months. 

Speaking during the Consumer Analyst Group Europe conference in London, where just-food was the exclusive media partner, Lindsay explained the appeal of food companies to private-equity investors. 

"Food companies do have relatively stable cash flows, even though they are relatively low growth at the top line level, they can be made to grow at the bottom line level through cost savings, consolidation synergies and improved focus. And there's plenty of capital in the private-equity world," he explained. 

Speaking during the Consumer Analyst Group Europe investor conference this week, the management of US giant Heinz once again took the opportunity to highlight the significance the group attaches to international expansion.

For some years now, Heinz - along with many other food majors - has been beating the same drum. In the developed markets of the US and Europe, the group has focused its portfolio, increased efficiency and invested in building its brands with the aim of creating a high-margin, low-growth business. 

In these markets, Heinz has invested in expanding its added-value meals and snacks brands, with 90% of meals and snacks revenues coming from developed markets. While this business has taken a bit of a hit in the downturn, with the importance of lower prices outweighing convenience, the firm has taken measures - such as introducing smaller pack sizes at lower price points - to protect market share and firm-up sales. 

Meanwhile, CFO Art Winkleblack enthusiastically reiterated, the group is looking to emerging economies to drive dynamic sales growth. 

Currently, two-thirds of Heinz' business is derived from outside the US, with 21% of total sales being generated in emerging markets, Winkleblack told analysts at CAGE.
In ketchups and sauces, Winkleblack revealed that the company expects the category size in emerging markets to eclipse that of developed markets in five years. Likewise, in infant nutrition, high birth rates and an expanding middle class are driving expansion of the category in emerging markets. 

Heinz has done much to tailor its offering to meet local needs,  Winkleblack insisted. "We don't go into a country and say one-size fits all," he explained. "What we are looking to do is expand in our categories."

Through various bolt-on acquisitions, Heinz has indeed expanded its branded offering to include local and regional brands that fit into its "trio of growth engines" - sauces, infant nutrition and meal solutions.

The Consumer Price Index basket of goods has been updated to include pineapples alongside teen novels and tablet computers.

The CPI basket is a list of products that the UK's National Office of Statistics monitors to keep track of changing trends in consumer inflation and the cost of living.

The basket is expanded and updated to reflect changing consumer buying patterns. So, with the sharp increase in teen novel sales - think the Twilight saga or the Chemical Garden trilogy - and the tablet computer craze that is sweeping the nation, these additions are quite self-explanatory.

But when is the last time you purchased a pineapple? Not pineapple chunks that you get in the sandwich counter of the supermarket. Not pineapple rings in a tin. An actual pineapple. I know when I did: we had a roast ham just after New Year and got a whole pineapple to slice up at the side so it would look fancy.

Not exactly an every day fruit for most people, your pineapple. Too big and cumbersome. Apples, bananas and even - if you want to get really exotic - kiwi fruit all come in nature's own single-serve portions. These are everyday fruits that fill lunch boxes and provide between-meal snacks across the country. Pineapples? Not so much.

Anyway, whether or not the move to include pineapples reflects a sudden jump in the popularity of this spiky fruit that has totally passed me by, I can't say. It wouldn't be the first time, after all. I still have no idea what "Bieber Fever" is, I learnt only today that lovers of the aforementioned Twilight are "Twihards" and I have pretty much no idea what any technological devise beginning with the letter "i" does.

According to the Office for National Statistics, the logic of including pineapples is that it is beneficial to collect as broad a range of fruit prices as possible because fruit prices vary greatly, so fair play.

Other new recruits from the world of food include some more everyday items like hot oats and continental cheese. These additions I can get fully on-board with. Perhaps I just don't have an exciting enough shopping basket. 

The announcement from Viterra that it has been approached over a possible takeover has resulted in a flurry of speculation over what "third parties" might be making a move on Canada's largest grain handling and marketing firm.

Names touted include US agribusiness giant Cargill, as well as the likes of Switzerland-based commodities titan Glencore International.

The spike in interest in Canadian grain processors comes as Ottawa prepares to end the Canadian Wheat Board's 76-year-old monopoly on sales of wheat and barley.

The Canadian government's move to strip the board of its monopoly over western wheat and barley sales and allow farmers to sell independently has provoked fierce controversy in western Canada.

Supporters of the CWB have claimed that the change will drive prices down and expose farmers to the swings of trading in commodities markets. Meanwhile, the Conservative government has argued that farmers can - and have the right to - get higher prices on the open market.

As Canada is the world's third-largest exporter of wheat, it seems likely that global agribusiness giants could well be lining up to get a piece of the action. However, in this highly-charged atmosphere, it also seems likely that any M&A activity could become the centre of considerable controversy. 

At the end of last week, Morrisons revealed that it has increased the number of women in senior management roles by 7% over the past year.

Female representation on the company’s senior management group – the top 100 executives in Morrisons – has increased from 13% to 20% in the last 12 months and is targeted to reach 30% by 2014, the company said.

A spokesperson for the retailer told just-food that one of the most important changes Morrisons has made is in identifying a pipeline of female talent that will allow women to progress through the business “so there is a route to the top”.

The company has also joined the Pearls initiative, a UK wide network supporting women to build their confidence, and established a working group to examine barriers to female advancement.

These moves to take the lid off the 'glass ceiling' are certainly laudable.

Indeed, a straw-poll of women around the just-food office suggested that structural issues are widely thought of as a significant barrier to female progression in the work place. To gain advancement in the male-dominated sphere of senior management, women are – to a greater or lesser extent - fighting against the status quo.

“Men are intimidated by women in power,” one female colleague said. “Clearly, women are better organisers and I think have better instincts,” our feminist champion continued from her soapbox.

Another barrier to women in the workplace was highlighted in a report out this morning (27 February), when figures released by national childcare charity Daycare Trust revealed that the cost of childcare is on the rise. 

The news comes at a time when the government's austerity measures are reducing the number of families eligible for assistance to meet the bill. In this respect, it seems that many women are being priced out of the workplace because it is simply not economically viable to work. I think it is – perhaps – overly cynical to suggest that this would not be entirely bad news for our (male-dominated) government, which is facing record levels of unemployment.

Cheap jibes aside, it is great to see a company like Morrisons taking an active leadership role on this, bringing an often overlooked issue to the fore.

Tesco has again been making headlines in the UK, this time over the company's involvement in the coalition government's controversial scheme to force unemployed people to take part in unpaid work placements.

The retail giant's involvement in the scheme came under the spotlight last week, when the retailer published an advert seeking permanent workers in exchange for expenses and jobseeker's allowance.

In the face of mass media attention and protests organised by campaign group Right to Work, the wheels quickly began spinning at the Tesco PR machine.

The advert, Tesco insisted, was simply the result of an IT processing error at the Job Centre Plus. Moreover, a spokesperson emphasised, participants would be guaranteed a job interview upon completion of the voluntary work placement.

The corporate message is clear then: in spite of first appearances, the company is not looking to replace full-time permanent workers with an army of jobseekers who are paid (by the taxpayer) a measly GBP1.78 an hour, if they are under 25, rising to GBP2.25 if they are over 25.

Nevertheless, while it seems likely the advert was indeed a mistake, the fiasco uncovers one of the most fundamental questions that can be put to the government over the scheme: is the programme reducing jobs by providing profit-making companies with an unpaid workforce?

It wasn't just Tesco running the media gauntlet over the weekend. Chris Grayling, minister at the Department of Work and Pensions, told Sky News that critics of the scheme – and supermarkets involvement in it - were "job snobs about the nature of the work those supermarkets are doing".

While Grayling may have felt his barbed comments a cutting repost exposing the hypocrisy of the scheme's largely left-leaning detractors, a case could also be made to suggest that he was in fact highlighting a failing – not only of the scheme, but of British society as a whole.

Back in 2009, then-Tesco CEO Sir Terry Leahy sparked a heated debate when he attacked "woeful" education standards in the UK and suggested that school-leavers had not been provided with the skills necessary to gain entry-level employment in supermarkets. These comments were echoed in the same year by former Marks & Spencer chief Sir Stuart Rose, who said many school leavers were not "fit for work".

So, is the government's work-placement scheme proof that the education system is continuing to fail Britain's youth? Why do you need to complete a work placement scheme before you can even get an interview? Are the majority of Britain's unemployed really that unprepared to join the workforce that they need to complete more than a month's work experience to gain the necessary skills to stack supermarket shelves or man checkouts?