Marks & Spencer sales surged over Christmas, boosted by bumper food division

The retailer saw £4.06bn in sales for the three months to December 28, just under two-thirds of which came from its food division, which saw its biggest ever trading day during the period.

M&S food sales grew 8.7 per cent year-on-year, compared with just 1 per cent sales growth across its clothing, home and beauty departments.

Chief executive Stuart Machin has led a turnaround in the business since joining in 2022, which has included spending money on larger food stores to bolster its most profitable line.

However, its clothing division also saw its best ever online weekly sales total, marking a striking comeback from being seen as unfashionable for much of the last decade.

Mr Machin said: “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.”

Mr Machin warned before Christmas that measures in the October budget would hit Marks & Spencer’s bottom line to the tune of £120m, and refused to rule out price rises to offset the extra costs.

The retailer said on Thursday that the outlook for economic growth and inflation remains “uncertain”, adding that the business faces “higher costs from well-documented increases in taxation”.

“However there remain substantial opportunities and we are focused on what is within our control, as we reshape M&S for growth.”

The vast majority of sales come from M&S’s UK and Ireland business, which recorded a 6.4 per cent like-for-like sales rise.

Its international sales came in at £178m, a 2.8 per cent drop compared with last year.

Richard Hunter, Head of Markets at interactive investor, commented: “ A resurgent M&S banished any potential winter blues with a blistering festive performance which saw new records being set in its flagship units of Food and Clothing, Home & Beauty.

“Long since the jewel in the crown of the group, the Food unit came into its own again over the period with increased sales amounting to 8.7 per cent, and 8.9 per cent on a like-for-like basis.

"Its innovative offerings continue to resonate with customers, with more choosing M&S for their entire Christmas shop, resulting in a record day for the unit.”

"The company anticipates a tougher year ahead, as customers potentially retrench in light of higher for longer interest rates and the possibility of higher goods prices following the measures announced in the Budget. However, for the time being M&S is strongly back in fashion with investors and customers alike. “Further tweaks to its store rotation programme, more investment into smaller ranges such as Home and Beauty, while targeting an improvement to its online offering and a reset of its International business are all signs of a business which will not be resting on its laurels.”