Marks and Spencer (M&S) Group Plc has announced its Christmas 2023/24 Trading Statement, revealing that it was the “top performing grocer in volume growth terms” over the both the festive period and the quarter.
The retailer reported that its Food sales had increased by 10.5%, with like-for-like sales up 9.9%. It said it was the “top performing grocer in volume growth terms” over the Christmas period and the quarter, with growth of around 7%.
Improvements to the supply chain reportedly helped to “drive better availability” year-on-year, and categories such as meat, poultry, produce, grocery and in-store bakery all delivered “strong” growth. M&S said this was supported by its programme of “innovation and quality upgrades”, but said that there was “more to do”.
However, international sales were down 6.4%, which M&S said was largely driven by the planned timing of franchise shipments in the Middle East and Asia and more “challenging” market conditions in India. It said alongside its franchise partners it was reviewing its priorities to improve performance.
Stuart Machin, M&S chief executive, said: “Our strategy to reshape M&S for growth has enabled sustained sales momentum across Food and Clothing & Home over the Christmas period. Thank you to our customers for shopping with us and to our colleagues who worked incredibly hard.
“In Food, we led the market on volume growth every month with a c.7% increase across the quarter, and served more customers than ever before. Core categories grew strongly and renewal stores, which cater to larger basket shops, performed particularly well, as more customers looked to us for more of their full shop.”
Outlook
M&S stated that as it entered into 2024 and the new financial year, its expectations for economic growth remained uncertain, with “consumer and geopolitical risks”. It also highlighted that it faced additional cost increases from higher than anticipated wage and business rates related cost inflation, but remarked that its “strong Christmas trading performance provided confidence that the results for the year will be consistent with market expectations”.
Machin continued: “We enter 2024 with a spring in our step, but clear eyed on the near-term challenges. We are determined to deliver our objective of driving 1% growth in market share in both businesses and to up the pace of our transformation: keeping a relentless focus on trusted value; accelerating our store rotation and renewal plans; doubling down on our supply chain programmes to improve availability and lower costs; and resetting our data, digital and technology strategy to unlock benefits in future years.
“Our vision is to be the most trusted retailer, doing the right thing for our customers, with quality products at the heart of everything we do, and we are just at the beginning of what we can achieve. Lots done, lots to do, lots of opportunity ahead.”
