CEO says chain is fastest-growing grocer for families
M&S has toasted strong Christmas food sales and a new market share milestone.
The retailer – which traditionally overperforms at Christmas – reported 5.6 per cent like-for-like sales growth in food for the 13 weeks to 27 December at £2.7bn. Total group sales were £5bn.
UK food volume growth in the period was 2.3 per cent, and the company noted that it has now outperformed the market for more than three years in both value and volume as its market share reached a historical high of 4 per cent in November.
M&S said that “strong operational execution and the sell-through of Christmas hero lines” resulted in higher sales and lower markdown and waste compared to the year before.
Sales growth was underpinned by strength in core grocery categories, the retailer said, while the period saw an increase in both shoppers and frequency. Value ranges, including ‘Remarksable Value’ and ‘Bigger Pack, Better Value’, grew by 20 per cent as the range continues to expand.
It said new and renewal stores outperformed the rest of the business, with new locations such as Cannock and the recently extended Chiswick store exceeding expectations.
CEO Stuart Machin said: “A record number of customers shopped M&S this Christmas. From the festive food shop, to picking up party outfits and gifts, millions more trusted M&S to deliver the family Christmas.
“Food sales were strong and the business continues to outperform, hitting a new market share milestone in the period. We are the UK’s fastest-growing grocer for families, reflecting our investment in value and core family staples, and demonstrating progress in our journey to become a shopping list retailer.
“Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery. Sales overall were slightly down but online performance continued to improve as digital sales recovered.
“We enter this new calendar year full of ambition and laser focused on our plan to reshape M&S for further growth. In Food, we have even more first-to-market innovation coming and further investment in quality and price.”
