While ongoing decline in its clothing & home division impacted group performance, food delivered positive like-for-likes, reports M&S in its interim results for the 26 weeks ending 28th September.
Results in brief
- Group revenue declined -2.1% to £4.86bn
- Profit before tax and adjusting items down -17.1%
- Food revenue up 1.2% to £2.85bn, and like-for-like sales up 0.9% drive by volume
- Clothing and home revenue down 7.8% to £1.6bn and like-for-like sales down -5.5%
- International sales down -1.2% to £445.6m
Food: investing in value paying off
More than 400 high volume lines have had their price reduced by over 10%. At the same time, promotional participation has nearly halved, as M&S pursues "trusted value" positioning.
Eight things to expect in the second half of the year
- Relaunch of Sparks in 2020
- Product innovation to broaden the retailer's appeal, following on from Plant Kitchen, Street Market and Cook With ranges launched this year
- Continued emphasis on attracting family shoppers, building on marketing success in this area
- Roll-out of supply chain improvements trialed in the Vangarde, York store, now live in 85 stores, with wider roll out planned for 2020
- Work to reshape the store estate continue, with the number of planned closures remaining unchanged
- Three more food renewal trial stores to open this year, following Hempstead Valley and Clapham
- Plans to transition Ocado to the M&S range are on track
- Transformed teams: as a result the movement of central functions (such as insight, learning & development and HR) to business units, as well as upweighting the commercial focus of the food division, with new category and sourcing roles
Want to know more?
For more insight into how M&S is progressing with its transformation programme: click here