Marks & Spencer is to cut its capital spending by over 50 per cent in the next two years and divert leftover resources to technology.

The retailer expects spending this year to reach around £700m, compared to a previous guideline figure of £800m-£900m, and plans to further reduce costs by focusing on IT and product management.

"For 2009/10 we now expect to spend around £400m with the focus on supply chain and information technology systems," said M&S executive chairman Sir Stuart Rose.

The company's latest trading update represents its sharpest sales drop in nine years, with a 6.1 per cent plunge in comparable sales. Food sales were down 5.9 per cent and non-food sales down 6.4 per cent.

Total sales for the group in the 13 weeks to 27 September rose by 0.4 per cent, while UK sales declined 1.6 per cent.

Earlier this year, Marks & Spencer reported a 78 per cent increase for its M&S Direct online operation, thanks to a relaunch of the site in 2007. The chain's target is for £500m of sales to be made through the e-commerce channel by 2010.

The revamp of M&S Direct, done in partnership with Amazon, improved functionality, searching and navigation, according to the firm.

Product catalogues online were also expanded to offer full lines of accessories and jewellery, as well as fringe sizes for clothing lines.