M&S delivers positive Christmas as sales rise

Excessive avenue retailer Marks & Spencer (M&S) has reported a constructive Christmas buying and selling interval, pushed by meals gross sales.

Based on its newest buying and selling replace for the 13 weeks to twenty-eight December 2024, complete gross sales rose 5.6% to £4bn. Meals gross sales accounted for £2.5bn, up 8.7%, whereas Clothes, Dwelling and Magnificence gross sales rose 1% to £1.3bn.

“Clothes, Dwelling & Magnificence gross sales elevated 1.0%, with LFL gross sales up 1.9%, forward of the market in difficult circumstances,” M&S stated. “Underlying gross sales grew 2.6% adjusted for the influence of the exit of the cumbersome furnishings class. Inside this, on-line gross sales have been up 11.7% pushed by buyer development and improved availability and represented 34% of gross sales within the interval vs 31% final 12 months.

“There stays work to do to proper dimension the shop property and put money into on-line development, however new and renewal shops continued to outperform expectations. Whereas inventory into Sale was broadly in step with final 12 months, we have now a chance to cut back possibility depend and drive full value promote by way of.”

Stuart Machin, Chief Government, added: “This was one other good Christmas for M&S, constructing on a powerful efficiency within the prior 12 months. We sustained buying and selling momentum with like-for-like gross sales up 8.9% for Meals and 1.9% for Clothes, Dwelling & Magnificence. Gross sales information have been damaged throughout the enterprise, with Meals recording its greatest day and Clothes, Dwelling & Magnificence on-line its greatest week, however we’re not complacent – as a development enterprise it’s our job to interrupt information.

“In Clothes, Dwelling & Magnificence our concentrate on model, high quality and worth noticed us develop gross sales and take market share in a declining market, with womenswear and menswear performing properly. M&S partywear gross sales have been up on final 12 months but it surely was our heartland classes of denim and knitwear that outperformed. Though Dwelling & Magnificence grew, the event of those classes is nascent, they usually stay areas of alternative.

“On-line grew strongly and new and renewed shops continued to outperform expectations, however retailer gross sales total have been down 1.5% partially as a result of climate. The chance for Clothes, Dwelling & Magnificence in 2025 is to proceed providing prospects the very best model, high quality and worth, however marry that with a concentrate on turning inventory sooner, additional decreasing choices and optimising retailer vary and house. As in Meals, these alternatives merely make us extra resolute to go sooner on our plans to modernise the provision chain and utilise digital and know-how to maximise our on-line potential.

“The exterior setting stays difficult, with value and financial headwinds to navigate, however there’s a lot inside our management. At M&S, we keep near our prospects and their wants, and with that in thoughts our funding in trusted worth, together with nice high quality, model and innovation stays our precedence. Reworking M&S is a marathon, not a dash, and we go into 2025 shifting up a gear and raring to go as we speed up the size and tempo of change.”