Marks and Spencer (M&S) reported an increase of 8.7% in food sales over the Christmas period.
Over the 13 weeks to 28th December 2024, food sales increased by 8.7%, with like-for-like sales up 8.9%. M&S sustained UK volume growth of 6.6% from the first half into the Christmas trading period driven by increased customers and transactions, and was the top performing store-based grocery retailer in volume and value over the period.
M&S said that initial supply chain investment supported improved availability, but increased volumes and associated stock flow challenges led to slightly higher seasonal markdown as the retailer reset for the new year.
Sales growth continued to be driven by investment in quality and value, said M&S, as core categories such as meat, produce, grocery and in-store bakery grew double-digits. M&S also noted that there was a “strong performance” from innovation and quality upgrades in areas such as Gastropub, as customers chose M&S as an affordable restaurant quality alternative to eating out.
Outlook
The retailer said its outlook for economic growth, inflation and interest rates was “uncertain”, and the business faces higher costs from “well-documented increases in taxation”. However, M&S said that there remained “substantial opportunities”, and said it was confident of making further progress in the remainder of the year.
Stuart Machin, chief executive of M&S, said: “This was another good Christmas for M&S, building on a strong performance in the prior year. We sustained trading momentum with like-for-like sales up 8.9% for Food… sales records were broken across the business, with Food recording its biggest day… but we’re not complacent – as a growth business it’s our job to break records.
“In Food, our focus on quality, innovation and trusted value translated into strong sales and market share growth, with M&S the top performing store-based grocery retailer over the period. 500 new lines were launched, and sales of new Christmas products grew 14%. Core category sales grew strongly as more customers ticked off their whole shopping list at M&S. There were a few growing pains as we delivered our biggest ever volumes, particularly in smaller stores, reaffirming the opportunity to accelerate transformation of the Food supply chain and go even faster on store renewal and rotation.
“The external environment remains challenging, with cost and economic headwinds to navigate, but there is much within our control. 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.”
