M&S has announced an upgraded profit forecast for the year ending 1 April 2024 following a significant surge in food sales.
- The retailer’s food sales increased by 11% in like-for-like terms over 19 weeks up to 12 August, driven by investment in quality and own-brand value.
- Clothing and home sales also saw a growth of 6%, with physical stores outperforming online sales.
- An investment of £13 million is dedicated to refurbishing several stores in the Northeast, including the Northumberland Street store in Newcastle.
- Despite the economic uncertainties, M&S expects improved profit outcomes compared to the previous year.
M&S has revised its profit expectations for the fiscal year ending on 1 April 2024, anticipating growth rather than the previously forecasted decline. This adjustment comes in the wake of an impressive 11% rise in like-for-like food sales over the 19 weeks leading up to 12 August. The increase is largely attributed to the company’s strategic investments aimed at enhancing the quality and value of its own-brand product lines.
During the same period, the retailer’s clothing and home sales witnessed an upswing of 6%. This growth was predominantly experienced in physical stores, which effectively offset a slower increase in online sales. The performance highlights the enduring appeal and importance of in-store shopping experiences.
Further enhancing its commitment to in-store excellence, M&S has unveiled a substantial £13 million investment plan. This capital will be used to refurbish several of its stores in the Northeast, ensuring that facilities meet contemporary consumer expectations. Notably, the Northumberland Street store in Newcastle is slated for redesigns to remain operational during the enhancements, with the new foodhall opening later this year.
Despite facing considerable uncertainties regarding the broader economic outlook, M&S projects that this year’s financial results will indicate profit growth compared to 2022-23. This optimistic outlook is reinforced by anticipated better-than-expected interim results. The performance across various retail sectors underlines the retailer’s robust market adaptation strategies.
M&S’s strategic enhancements in quality and store investments position it for profit growth despite economic uncertainties.
