NEARLY 1,000 local staff at one of the biggest retailers in Hampshire are braced for another potential blow to morale and their pockets.

Clothes-to-home furnishings chain Marks & Spencer has already suffered a well-documented turbulent year.

But now a second-quarter trading statement from the middle market company, due to be released to the City this morning, was expected to show poor sales in casual wear and food.

M&S is already reeling from an influential report by Verdict Research over Britain's lucrative £4.3 billion childrenswear market.

Just five years ago the company enjoyed the biggest slice, but now it only has a 5.5 per cent share of the market, placing it in joint fourth place with Woolworths.

High street rival Next, with 10.7 per cent, heads that all-important sector, followed by Asda's George and Tesco.

Verdict stated: "Unlike its main rival Next, M&S is not a destination for childrenswear and its performance in this category is consistently disappointing."

M&S boss Stuart Rose admitted competition is tough, and sought to publicly reassure staff by saying: "In spite of our problems M&S is a business with a significant strengths."

Touching upon that, today's trading statement may reveal some good news.

Sales of women's formal wear and knitwear are said to have shown encouraging increases.

Meanwhile, Philip Green, who was thwarted in his £9 billion bid earlier this summer to buy M&S, is adding fuel to the fire.

Figures for M&S arch rival Bhs, which he owns, are being released tomorrow, instead of later this month, and reports say they will highlight the differences in fortunes between the two.

Staff at M&S stores in Hampshire, many of them shareholders, are said to have been left unsettled by the company's roller-coaster ride this year.

They are also said to be concerned that their shares may fall in value if sales slide.

Mr Rose promised shareholders they will see sales growth during the financial year 2005-6. M&S shares are languishing at just over 344p, well below the £4-a-share offer in July by Mr Green, who has not ruled himself out of another takeover bid early next year.

M&S employs more than 564 people at its south coast flagship store at Hedge End, with a further 182 at WestQuay in Southampton, 100 at Winchester and 70 in Fareham.

Meanwhile, M&S is looking to recruit up to 197 customer assistants to work in a number of south coast stores, including Winchester and Andover.

Head of recruitment Richard Bennett said: "Marks & Spencer is an amazing place to be in the run-up to Christmas.

"We're looking for enthusiastic, flexible people to join our active team and make our stores as festive and welcoming as possible."