MARKS & Spencer boss Stuart Rose finally hailed a "recovery" at the high street chain today after sales surged in the build-up to Christmas.

The former pupil of Bootham School, York, said same store sales were 5.6 per cent higher between October and December than they were in the same period 12 months earlier.

Mr Rose, who until today has refused to use what he calls "the R-word", said: "We have now delivered growth on growth in all areas of our business, thus completing the first part of our recovery plan."

M&S, which has two stores in York city centre, two at Monks Cross and one at the Designer Outlet, near Fulford, said like-for-like sales in general merchandise including clothes were up 7.1 per cent in the three-month period, while food sales were up 3.6 per cent.

Total sales growth including new and expanded stores was 9.2 per cent, with general merchandise up 9 per cent and food up 9.5 per cent.

Mr Rose warned that the tougher environment was set to continue.

"M&S had a good Christmas," he said. "In the fourth quarter, we come up against significantly tougher comparatives, whilst facing a more challenging retail environment. This quarter will be impacted by the next phase of our store modernisation programme, which starts earlier than last year."

The rise in share price has been good news for employees, with 12,000 staff, many of them working in the stores, set to pocket a £56 million windfall through the company's Sharesave scheme.

Mr Rose said: "If our performance continues in the fourth quarter, we anticipate paying a bonus to all our staff.

"Additionally, we are delighted that a further 12,000 employees will benefit from gains in the Sharesave schemes, worth £56 million, maturing this month."