Marks & Spencer welcomes record number of shoppers over Christmas
Marks & Spencer (M&S) has revealed that it welcomed a record number of shoppers over Christmas as festive food sales leapt higher, but its fashion and homeware division was squeezed by the ongoing impact of last year’s cyber attack.
The retailer revealed that both the value and volume of food sales increased in the lead-up to Christmas; meaning shoppers were spending more.
Food sales grew by 5.6 per cent over the 13 weeks to December 27, compared like for like with the same period a year before.
This was the same annual increase that the supermarket recorded for 2024.
Christmas food ranges helped lift spending over the period, resulting in fewer markdowns and less waste than the previous year, the statement added.
It also highlighted the strength to its core grocery products and upgrades to ranges such as Italian ready meals, in-store bakery and the deli.
Value-for-money ranges soared by a fifth as availability of the lines increased.
But the group’s fashion, home and beauty division failed to keep pace with its food business, with sales dipping by 2.9 per cent year on year.
M&S said online sales growth was offset by less spending in stores, which it partly attributed to “reduced high street footfall”, which indicates there was a reduction in visitors to British high streets.
It also blamed the prolonged impact on its stock data and management systems following a major cyber attack last year.
M&S revealed in November that the incident was set to impact its annual profits by around £136 million, including about £34 million in the final six months of its financial year.
The retailer was forced to stop all online sales for around six weeks and it suffered empty shelves due to disruption to its logistics systems after hackers targeted the business around the Easter weekend.
Looking ahead, M&S said it plans to “reshape” the business for growth against an “uncertain consumer environment”, including by transforming its stores and reducing costs.
Chief executive 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.
“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 planned a bigger sale this year, with strong sell-through already making way for our new season lines.
“We enter this new calendar year full of ambition and laser-focused on our plan to reshape M&S for further growth.”
Richard Hunter, Head of Markets at interactive investor, commented: “M&S has yet to shake off its cyber hangover and although Christmas sales were solid, they were below estimates which is a slight disappointment.
He added: "That being said, there is little doubting the ongoing resilience and strength of the Food business, which accounts for 54 per cent of group revenues.
"Sales increased by 6.6 per cent to £2.72 billion in the quarter, reaching a new milestone market share for the group, and where innovation and quality upgrades continue to propel performance.”