Marks & Spencer's christmas sales jump 8.1%, led by food & fashion growth

M&S festive surge: Marks & Spencer, the British retailer, has reported a better-than-expected 8.1 per cent increase in like-for-like sales during the Christmas trading period. The growth was primarily fuelled by a market-leading surge of 9.9 per cent in food sales and a strong performance in womenswear, with both figures surpassing analyst forecasts.

The 140-year-old company, a favourite amongst Christmas shoppers, acknowledged facing additional cost pressures due to inflation in wages and business rates. Despite these challenges, Marks & Spencer expressed confidence in meeting year-end forecasts and stated that they enter 2024 with optimism.

M&S's post-holiday strategy

M&S's growth during the festive season is part of a broader strategy to retain customers beyond Christmas. Historically, M&S faced challenges in retaining customers after the holiday season. However, the company has seen a notable increase in grocery sales, with a 12.8 per cent growth in the 12 weeks leading up to December 2, ranking third after Aldi and Lidl. Operational improvements, including a revamped supply chain for more competitive pricing, have contributed to this growth.

Under the leadership of CEO Stuart Machin, M&S aims to reshape its image from an upmarket occasional option to a destination for weekly shopping. The strategy involves offering 200 essential items at prices comparable to mainstream competitors, with plans to introduce 1,400 new product lines by April 2024. M&S is also expanding into traditionally weak areas, investing in larger and refreshed stores, and strengthening its online presence through a joint venture with Ocado.

(With Reuters Inputs)