M&S sales surge over Christmas after supermarket issues price rise warning
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Marks & Spencer has reported a 5.6% increase in sales compared to the third quarter of 2023, which includes the crucial Christmas trading period. The retailer boasted £4.06bn in sales for the three months leading up to December 28, with its food division contributing nearly two-thirds of this revenue and experiencing its largest ever trading day during this time. M&S's food sales soared by 8.7% year-on-year, overshadowing the modest 1% growth across its clothing, home, and beauty departments.
Chief executive Stuart Machin, who has been at the helm of the company's revival since 2022, has focused on expanding larger food stores to enhance its most lucrative sector. Meanwhile, the clothing division celebrated its highest online weekly sales ever, marking a significant turnaround from its previous reputation as outdated.
Mr Machin commented: "This was another good Christmas for M&S, building on a strong performance in the prior year. 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.
"The external environment remains challenging, with cost and economic headwinds to navigate, but there is much within our control.". Prior to Christmas, Mr Machin cautioned that the October budget measures would impact Marks & Spencer's profits by approximately £120 million and did not dismiss potential price hikes to mitigate these additional expenses. The high street giant issued a cautionary note on Thursday, admitting that the economic landscape filled with growth and inflation uncertainties is presenting them with "higher costs from well-documented increases in taxation".
