LONDON: British retailer Marks and Spencer said Wednesday that sales improved in its second quarter, driven by revamped food, clothing and homeware products, but it remained cautious about the outlook.

In a trading update, Marks and Spencer a barometer of consumer sentiment in recession-hit Britain said total sales rose 2.7 percent in the 13 weeks to September 26, compared with the same period of the previous year.

"We are pleased to report continuing improvement in our performance. This demonstrates that the actions we are taking are working," said chairman Stuart Rose in a statement.

"Whilst there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook. We expect 2010 to be a tough year and we will continue to run the business accordingly."

That said, the retailer plans to hire an extra 20,000 seasonal workers for the Christmas period.

In its home market Britain, Marks and Spencer said sales increased by 1.9 percent. Its international division performed much better, with sales up 9.6 percent.

In response to the downturn, and in a bid to lure cash-strapped shoppers back from cheaper stores, the group has launched a budget range of food products, slashed capital spending and cut its shareholder dividend.

Earlier this year, Marks and Spencer said it would axe up to 1,230 jobs and shut 27 stores in Britain and elsewhere.