M&S has raised its profit forecast for the full year as it continues to grow its grocery market share.
The retail giant now expects to deliver profit growth in the year to 1 April 2024, having previously predicted a small decline.
Like-for-like food sales surged 11% in the 19 weeks to 12 August, boosted by the retailer’s investment in quality and value of own-brand lines.
Clothing and home sales were up 6% over the period with strong in-store growth helping to offset “more subdued growth in online”.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
M&S said: “There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses.
“Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations.”
The retailer unveiled a £13m store investment plan earlier this month, which will see several of its shops in the Northeast given multi-million-pound refurbishments.
It confirmed its Northumberland Street store in Newcastle city centre will be redesigned in stages so the store can remain open, with the new foodhall set to open later this year.
