Marks & Spencer reported an 8.9% like-for-like increase in food sales in the run-up to Christmas, with the retailer stating that it was the top-performing grocer in the UK in the busy period.
Total food sales at M&S stood at £2.58 billion (€3.07 billion) – an 8.7% increase – while clothing, home and beauty sales went up by 1.0%, or by 1.9% on a like-for-like basis. Total group sales totalled £4.06 billion (€4.83 billion) – a 5.6% increase.
‘Sustained Trading Momentum’
“This was another good Christmas for M&S, building on a strong performance in the prior year,” commented Stuart Machin, chief executive. “We sustained trading momentum with like-for-like sales up 8.9% for food and 1.9% for clothing, home and beauty.
“Sales records were broken across the business, with food recording its biggest day – and clothing, home and beauty online its biggest week – but we’re not complacent. As a growth business, it’s our job to break records.”
M&S launched 500 new food product lines in the period, while sales of Christmas-related food products rose by 14%.
The retailer also saw increased numbers of customers ‘tick off their whole shopping list at M&S’, which led to some stock flow issues in smaller stores. As a result, it has pledged to ‘accelerate the transformation of its food supply chain, and move quicker on store renewal and rotation.’
Performance in both new and renewed stores ‘exceeded expectations’, with core categories including meat, produce, grocery, and in-store bakery growing by double digits.
Market Outlook
Looking ahead to the new year, M&S noted that the outlook for economic growth, inflation, and interest rates remains ‘uncertain’, with the business facing higher costs linked to taxation.
At the same time, it sees ‘substantial opportunities’ in the market, as it repositions the business for growth.
“The external environment remains challenging, with cost and economic headwinds to navigate, but there is much within our control,” Machin added. “At M&S, we stay close to our customers and their needs, and with that in mind, our investment in trusted value, along with great quality, style and innovation, remains our priority.”
