M&S profits jump as investment into food innovation boosts sales
M&S first-half profits surged on the back of growing food sales as the grocer continues its strategy to be the “most trusted retailer”.
For the 26 weeks to 28 September, profit before tax soared 17.2% to £407.8ml. In its food division, adjusted operating profit edged up 0.5% to £242.2m and food sales jumped 8.1%.
The upmarket retailer said grocery growth was driven by produce, meat and dairy, as well as a strong programme of innovation, and having the “strongest value perception in over a decade”.
M&S chief executive Stuart Machin said: “Executing our strategy to ‘Reshape M&S for Growth’ has again delivered an increase in customers, sales value and volume, market share, profit and returns. Both food and clothing have now delivered market share growth for four consecutive years.”
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In the food business, 1,000 products are being upgraded and 1,400 new lines are being launched across the year, which Machin said puts M&S “even further ahead of the pack on quality credentials”.
He added that progress on being a “shopping list retailer” has driven growth in larger baskets.
In looking to offer trusted value, prices were ‘dropped and locked’ on key shopping items such as fish, dairy and poultry, and seasonal fresh market specials were relaunched, which the grocer said helped to drive sales of core lines.
Looking ahead, M&S expects the backdrop of elevated cost inflation to persist, however added that it is “confident of making further progress in the remainder of the year”.
Machin added: “We are confident and we remain on track and focused on what is in our control. We have the best Christmas food range I’ve seen in my time at M&S and the most stylish seasonal clothing offer yet, and we know customers are looking forward to celebrating Christmas with M&S.”




