Trading figures released today by Marks & Spencer confirm it was a Christmas winner in the grocery market after seeing like-for-like food sales surge up 8.9% over 13 weeks to 28th December.
The group noted that food volume growth of 6.6% from the first half was sustained into the festive trading period, driven by increased customers and transactions. The retailer pointed to Kantar data showing it was the top performing store-based grocery retailer in both volume and value terms over the period.
M&S said that trading in new and renewed food stores had exceeded expectations, while supply chain investment supported improved product availability. However, increased volumes and associated stock-flow challenges led to “slightly higher seasonal markdown as we reset for the new year”.
The retailer stated that its food sales growth continued to be driven by investment in quality and value, with 500 new lines launched in the period. Core categories, such as meat, produce, grocery and in-store bakery, grew by double-digits as the chain attracted more people doing their everyday shopping.
M&S also noted that innovation and quality upgrades in its premium ranges had led to consumers choosing the retailer as an “affordable restaurant-quality alternative” to eating out. Meanwhile, sales of its ‘Remarksable’ value range grew 14%.
In the group’s Clothing, Home & Beauty division, like-for-like sales were up 1.9% in “challenging conditions”, with womenswear and menswear performing well. Online grew strongly (+11.7%), and new and renewed outlets continued to “outperform expectations”, but store sales overall fell 1.5%, in part due to poor weather.
Stuart Machin, the Chief Executive, said: “This was another good Christmas for M&S, building on a strong performance in the prior year.” However, he added: “We’re not complacent.”
Looking ahead, the company said: “As we enter the new year, the outlook for economic growth, inflation and interest rates is uncertain, and the business faces higher costs from well-documented increases in taxation.
“However, there remain substantial opportunities, and we are focused on what is within our control as we reshape M&S for growth. Therefore, as indicated at the half-year results in November, we are confident of making further progress in the remainder of the year.”
Clive Black, renowned analyst and head of consumer research at Shore Capital, said the performance was “a little better than our expectations” and maintained his full-year 2025 profit before tax guidance at £830m.
“With M&S speaking of being a ‘growth business’, there appears to be a good few miles in the M&S investment thesis yet,” he concluded.
NAM Implications:
- Given this additional evidence of M&S rebound…
- …are suppliers giving M&S the attention it patently deserves?
- Those that do, are fully aware that M&S have upped their game…
- …in terms of innovation and quality upgrades in their premium ranges…
- …could mean that those wishing to climb back on board may find the steps a little higher than last time.
