M&S sees ‘another good Christmas’ as investment in quality and value pays off

In the 13 weeks to December 28, M&S saw total group sales grow 5.6% to £4bn.

Total food sales increased 8.7% and 8.9% on a like-for-like basis to reach £2.5bn, with the retailer attributing higher sales to “investment in quality and value” with 500 new lines added.

Core categories including meat, produce, grocery and in-store bakery grew double-digits.

Clothing sales inched up 1% to reach £1.3bn with like-for-like sales up 1.9%. Online sales increased 11.7% due to “customer growth and improved availability” to represent 34% of total sales.

M&S added that work still needs to be done to make sure its store estate is the right size and to invest in online growth.

International sales declined 2.8% which was mainly driven by ongoing “challenging” market conditions in India. It remains “confident” in the growth opportunity abroad in the medium term.

Entering 2025, the retailer said the outlook for economic growth is uncertain and that it faces higher costs from “well-documented” increases in taxation, but it is confident on making further progress.

Marks & Spencer chief executive 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 and 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 being the top performing store-based grocery retailer over the period. 500 new lines were launched, and sales of new Christmas products grew 14%. 

“The opportunity for clothing, home and beauty in 2025 is to continue offering customers the best style, quality and value, but marry that with a focus on turning stock faster, further reducing options and optimising store range and space. As in Food, these opportunities simply make us more resolute to go faster on our plans to modernise the supply chain and utilise digital and technology to maximise our online potential.

“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.”