With Marks and Spencers full year results being announced on Wednesday, it is expected investors will be looking for signs customers are cutting back on more expensive food as the result of the ongoing rising inflation.
The grocer is expected to report a pre-tax profit of £522 million in the full year to the end of March.
Food sales are also predicted to climb 10.3%. However, with inflation reaching a 40 year high of 9% in April, analysts are warning customers may turn away from more expensive food items, instead choosing a cheaper store do to do their weekly shop.
foREAD MORE: M&S announces return of fresh market update campaign
According to analysts, this could mean the grocer, which tends to be more affluent , are insulated from rising prices.
“Marks & Spencer finds itself in a tricky spot with inflation running high,” Hargreaves Lansdown analyst Sophie Lund-Yates.
“Mid-week treats are likely to be rubbed off shopping lists, meaning the food business may be in for a tough time, as households scramble to economise.
“The flip side of this of course is that the group’s core demographic is unlikely to be too perturbed by the cost-of-living crisis, which should offset some lost sales.”
Click here to sign up to Grocery Gazette’s free daily email newsletter