M&S continues to build momentum

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 Source: Josh Holmes, Linkedin

✨ Marks and Spencer continues to build momentum despite one of the most disruptive cyber attacks ever faced by a retailer.

FY25/26 results:
• Group sales up 1.9% to £14.2bn
• Food sales up 7.0% to £9.7bn
• Fashion, Home & Beauty sales down 7.7% to £3.9bn
• Adjusted profit before tax down 23.8% to £671m

Behind the numbers:
1. Food is the growth engine: Food sales are now approaching £10bn, market share has risen to 4.1% and 800,000 shoppers were added during the year. New, larger Food halls and continued growth through Ocado Retail are extending its reach. The result is a retailer increasingly competing for a bigger share of the weekly shop, not just premium top-up missions.

2. Bigger better stores: M&S opened 12 new Food stores during the year and plans another 18 this year, including several former Homebase locations. Larger Food halls and renewed full-line stores allow customers to shop more of the M&S offer in one place. That supports bigger baskets, greater cross-shopping and a stronger omnichannel proposition.

3. Cyber shock: Fashion, Home & Beauty bore the brunt of the disruption as online sales were curtailed, stock built up and higher markdown activity weighed on profitability. The cyber attack turned what would have been an impressive year into a year of two halves. It was a significant setback, but not one that appears to have changed the overall growth trajectory.

4. Never standing still: More than 1,400 new Food products were launched during the year and over 1,000 existing lines were upgraded, including ingredient-led and Nutri Dense ranges that showcase M&S's health credentials. The expansion of the Remarksable value range, launch on TikTok Shop and new Fashion collaborations reflect a business determined to stay relevant to changing consumer habits. Recent success hasn't made M&S complacent.

5. A more connected M&S: More than half of online orders now come through the M&S app, while 57% are collected in-store. Sparks has been relaunched with a digital wallet, AI-powered personalisation and rewards shaped by how and where customers shop. M&S is building a more connected customer journey where stores, loyalty and digital channels reinforce one another.
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