Marks & Spencer experienced a successful Christmas business, including the best food sales day of all time

Marks & Spencer looks set to be the big retail winner for Christmas 2024 after the group’s sales soared above market expectations.

The retailer on Thursday recorded sales of almost £4.1bn for the 13 weeks to December 28, driven by strong demand for food, as M&S continued to gain market share.

Food sales soared 8.9 per cent on a like-for-like basis, beating expectations for 7.8 per cent growth and making M&S the best-performing grocery retailer in terms of volume and value during the period.

Clothing, home and beauty sales rose 1 percent, beating forecasts for 0.7 percent growth and defying a 1.5 percent drop in non-food sales suffered by the broader retail market during the fourth quarter.

While the retailer’s food division experienced its best day during the period, non-food sales enjoyed a record week online.

Year-on-year growth of 6.4 per cent in the UK and Ireland offset a decline overseas, which M&S attributed to “continued challenging market conditions in India and the gradual reduction of franchise shipments”.

He said that “restart actions are being carried out” and that the group “is confident in the opportunity for growth” internationally in the medium term.

M&S has continued to beat analyst forecasts thanks to its revival under Stuart Machin, who has made a series of important strategic moves, including the reorganization of around 1,500 stores and the launch of the group’s restaurant offering.

The group has also increased investment in quality and innovation.

Industry data released earlier in the week also suggests the retailer’s joint venture with Ocado is starting to pay dividends.

Machin said: ‘This was another good Christmas for M&S, building on the previous year’s strong performance.

“Transforming M&S is a marathon, not a sprint, and we will get to 2025 accelerating and raring to go as we accelerate the scale and pace of change.”

Tax increases herald an uncertain future

Looking ahead, M&S flagged economic uncertainty in terms of growth, inflation and the direction of interest rates, as well as “well-documented tax increases”.

M&S faces £120m a year in extra taxes and costs following autumn budget increases to employers’ national insurance and minimum wage contributions.

Machin added: “The external environment remains challenging, with costs and economic obstacles to overcome, but there is much that is within our control.

“At M&S, we stay close to our customers and their needs, and with that in mind, our investment in trusted value, along with great quality, style and innovation remains our priority.”

Marks & Spencer shares It sank 5.4 per cent to 356.5 pence in early trading, taking the 12-month gain to around 24 per cent.

Richard Hunter, chief investment officer at Interactive Investor, said: ‘The company anticipates a more difficult year ahead as customers potentially pull back in light of higher interest rates for longer and the possibility of higher bond prices. assets after the measures announced in the Budget.

‘However, for the moment M&S ​​is back in fashion with both investors and customers.

‘New adjustments to its store rotation program, more investments in smaller ranges such as Home and Beauty, while aiming for an improvement in its online offering and a restart of its international business are signs of a business that will not sleep on the laurels. ‘