Next suffers at the hands of resurgent M&S

Next has lost ground on autumn clothing prices to rival Marks & Spencer as Stuart Rose continues his fightback.

M&S has cut womenswear prices by 8.9 per cent this season compared with last year on an average basket measured by Merrill Lynch. Prices of similar items at Next fell 1.8 per cent.

The shift means womenswear prices at Next are now only slightly ahead on the Merrill Lynch Price Comparison Index. Next has a score of 97, compared with 100 for M&S, which is used as the index average.

Merrill Lynch noted: 'The surprise was the extraordinary lack of change in prices in Next womenswear. Eleven of the 14 items had not moved at all in price.' On menswear, M&S was found to be cheaper.

• At M&S, the planned departure of George Davies has left a question mark over the Per Una HQ at Draycott in the Cotswolds. One rationale for the location - that it is close to Davies' home - no longer stands. M&S would not comment on a possible move to Paddington.