Following today’s release of Marks and Spencer’s figures for the 19 weeks ending 12th August 2023; Joe Dawson, retail analyst at GlobalData, a leading data and analytics company, offers his view: “M&S has been the high street success story of 2023, with sales across food and clothing & home up as rejuvenated stores and updated ranges have improved customer perception and driven increased footfall across the UK. The retailer reported over 11% growth in like-for-like food sales and an over 6% increase in like-for-like clothing & home sales for the 19 weeks to 12 August, despite wetter weather in July dampening summer retail sales in the UK, leading to an increase in its profit and sales growth expectations for H1 FY2023 and a 9% increase in its share price in early trading.
“A slowdown in inflation and the promise of warmer weather boosted sales of M&S’ holiday range between April and June, with increases in beachwear, linen and swimwear sales year on year as shoppers prepared for holidays abroad. The retailer will also have benefitted from the popularity of the Women’s World Cup, having collaborated with England’s Senior Women’s team to produce a range of tailored pieces that have been worn by the Lionesses throughout the tournament.
“Another football adjacent programme has been the retailer’s Eat Well Play Well campaign, featuring members of the UK’s national football teams as well as prominent figures in the community promoting healthier lifestyles and urging shoppers to “follow the flower” in reference to M&S’ healthy food branding. While healthy eating may have taken a backseat to low prices as a priority for some consumers during the cost-of-living crisis, it is still an important and relevant topic for many, especially M&S’ typically more affluent customer base. This, combined with the expansion of the Remarksable value range will have been the backbone of strong food sales as consumers continue to opt for the retailer’s reputed quality and value for money. It is important to note however that the 11% growth in like-for-like food sales was up against a relatively weak comparative, 3.4% in Q1 2022/23 and a warning of the uncertainties surrounding the economic outlook show M&S’ cautiously optimistic view of the coming year. Strong growth during the Christmas period in FY2022/23 will make for tougher comparatives in the latter stages of FY2023/24.
“Despite halted plans for the revamp of the flagship Marble Arch store, M&S’ plans for store rejuvenation will continue, with a £13 million investment in the North East that will see an transformations and new openings. Across the UK, M&S’ new store renewal programme will cost £480 million and expects to open 20 new stores this year.”
