Marks & Spencer saw a strong trading period over Christmas, though its outlook for 2025 remained uncertain due to national and global factors out of the retailer’s control, the company said on Thursday.
Food sales for the retailer increased 8.7% with like-for-like sales up 8.9% in the 13 weeks to 28 December 2024.
M&S sustained UK volume growth of 6.6% from the first half into the Christmas trading period driven by increased customers and transactions, the retailer said.
It added that initial supply chain investment supported improved availability, but increased volumes and associated stock flow challenges led to slightly higher seasonal markdown ahead of the new year.
As the retailer continued to invest in quality and value – introducing 500 new lines in the measured period – sales growth advanced.
Core categories, such as meat, produce, grocery and in-store bakery grew to double-digits as customers chose M&S more for their everyday shopping.
The retailer also reported a strong performance from innovation and quality upgrades in areas such as the Gastropub range, as customers opted for high-quality home options as an alternative to eating out due to high prices in hospitality.
‘Remarksable’ sales also grew as M&S continued its investment in value products.
Beyond Food
Elsewhere in the business, Clothing, Home & Beauty sales increased 1.0% with like-for-like sales up 1.9% and underlying sales growing by 2.6% adjusted for the impact of the exit of the bulky furniture category.
New and renewal stores in this category outperformed expectation, though the online sector left room for improvement.
Looking ahead, the outlook for economic growth, inflation and interest rates remains uncertain, with M&S joining a chorus of retailers raising concerns about high prices under taxes announced the Labour Party’s first budget in October.
The social security charges are due to come into effect in April.
Despite this uncertainty, M&S has stated its intent to focus on areas within its control as it reshapes the business for growth and aims to continue on its upward trajectory.
The retailer reiterated its sentiment from November half-year results in making further progress for the remainder of the financial year.
'Sales Records Were Broken'
Commenting on the results, chief executive of M&S Stuart Machin 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 and 1.9% for Clothing, Home & Beauty.
“Sales records were broken across the business, with Food recording its biggest day and Clothing, Home & Beauty online its biggest week, but we’re not complacent – as 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.”
‘A Marathon, Not A Sprint’
When looking to the future, Machin expressed cautious optimism.
He said, “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.
“Transforming M&S is a marathon, not a sprint, and we go into 2025 shifting up a gear and raring to go as we accelerate the scale and pace of change.
“Thank you to all of our customers for shopping with M&S this Christmas and to all of our colleagues for their extraordinary effort delivery M&S’s busiest ever peak.”
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