In a noteworthy development, M&S has reported a substantial surge in its profits for the first half of 2024. This increase is largely attributed to the company’s ongoing dedication to food innovation and its focus on establishing itself as the “most trusted retailer.”
For the six-month period ending 28 September, M&S saw its profit before tax rise by 17.2%, reaching £407.8 million. The food division, in particular, witnessed impressive growth, with adjusted operating profit increasing by 0.5% to £242.2 million and food sales jumping by 8.1%. This growth is driven by produce, meat, and dairy sectors, alongside a robust innovation programme that has strengthened the retailer’s value perception to its best in over a decade.
Chief Executive Stuart Machin credited the company’s strategy, ‘Reshape M&S for Growth,’ for these positive outcomes, highlighting consistent market share growth in both food and clothing over the past four years. M&S has pushed forward with enhancing 1,000 existing products and introducing 1,400 new lines throughout the year, solidifying its quality credentials.
Progress towards becoming a ‘shopping list retailer’ has been instrumental in driving larger basket sizes. Key price reductions on items such as fish, dairy, and poultry, coupled with seasonal fresh market specials, have also contributed to increasing core line sales.
Looking ahead, the retailer acknowledges the challenges posed by elevated cost inflation but remains optimistic about further progress within the year. Machin expressed confidence in the company’s trajectory, noting the strong Christmas food range and stylish seasonal clothing offer they have prepared, anticipating a positive customer response.
M&S’s strategic focus on food innovation and value perception has clearly paid off, as evidenced by their impressive profit growth. Despite the challenges of cost inflation, the company remains on track, with a promising outlook for the remainder of the year.
