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 noted on Thursday.
Food sales for the retailer increased by 8.7%, with like-for-like sales going up by 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 noted.
It added that initial supply chain investment supported improved availability, but increased volumes and associated stock flow challenges led to slightly higher seasonal markdowns 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 its 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 by 1.0%, with like-for-like sales going up by 1.9% and underlying sales growing by 2.6%, adjusted for the impact of the exit of the bulky furniture category.
New and renewed 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’s half-year results, in making further progress for the remainder of the financial year.
‘Sales Records Were Broken’
Commenting on the results, the 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 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.
“Five hundred [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 delivering M&S’s busiest-ever peak.”
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