M&S has reported a significant rise in profits for the first half of 2024, driven by its strategic focus on enhancing food offerings.
During the 26 weeks leading up to 28 September 2024, M&S achieved a notable 17.2% increase in profit before tax, reaching £407.8 million. The food division experienced a minor boost in adjusted operating profit by 0.5% to £242.2 million, while achieving an 8.1% rise in food sales. This growth was fueled by improvements in the produce, meat, and dairy sectors, bolstered by an impressive innovation programme and the strongest value perception the company has seen in over a decade.
Stuart Machin, M&S’s chief executive, attributed this success to their ‘Reshape M&S for Growth’ strategy, which has consistently enhanced customer base, sales, market share, profit, and returns. Both the food and clothing departments have reported market share growth for four consecutive years, reflecting the effectiveness of the strategy.
M&S has been proactive in upgrading 1,000 products and launching 1,400 new lines throughout the year, aiming to strengthen its quality credentials and maintain its competitive edge. According to Machin, the focus on being a dependable ‘shopping list retailer’ has resulted in larger consumer baskets, which has been beneficial for sales.
Price adjustments, including ‘dropped and locked’ prices on essential items like fish, dairy, and poultry, alongside seasonal fresh market specials, have played a crucial role in driving core line sales. Looking forward, M&S anticipates ongoing challenges with elevated cost inflation but remains optimistic about further progress this year.
Machin expressed confidence in their current trajectory: ‘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.’
M&S’s commitment to innovation and strategic pricing has positioned it strongly in the market, navigating challenges with resilience and planning for future success.
