The supermarket's women's clothing brand's revival contributed to its strong performance
Marks & Spencer said he was attracting shoppers from Waitrose as its chief executive said a record number of customers bought groceries from the retailer at Christmas.
Stuart Machin said the FTSE 100 retailer was taking market share from rivals and intends to make further progress this year by investing in prices.
His challenge comes at a time when the battle between M&S and Waitrose is at its sharpest, with the latest industry data showing both companies holding a 3.8% share at the food market. for 12 weeks until December 30.
Asked on Thursday whether he expected M&S to overtake Waitrose any time soon, Mr Machin said: “I know every retailer talks about profit and loss, but we took a look at some competitors – and you named one [ Waitrose].
“I think it's fair to say that we think we can get a share of the wider food market overall. We are not focused on just one competitor.”
On price competition on products, Mr Machin said M&S had invested £50 million this financial year, including £22 million in the last three months of 2023, and was “committed to investing more in value”.
M&S boss Stuart Machin says the FTSE 100 retailer is investing £50 million in the move. year Credit: M&S
He said the grocer's “commitment is not to raise prices” but refused to rule out any future price increases.
Mr Machin added: “But our job is to continue to restructure our cost base so it doesn't lead to higher prices.” This will not affect the client. That's what we're focused on.”
He spoke as M&S said a record number of customers bought groceries at the chain's grocery stores over Christmas, with many going there to “further fill their stores ” than before.
On the apparel side, the brand's renaissance in womenswear also continues to pay dividends, with Autograph knits, denim and premium pieces flying off the shelves.
The comeback is a coup for M&S, which has finally hit its stride. turnaround after a decade of false starts. Mr Machin said the retailer was heading into 2024 with “a spring in its step”.
Overall, M&S said sales rose 7% to £3.9bn in the 13 weeks to the end of December .
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Like-for-like sales of food products were up 10%, with strong sales in meat, poultry, produce and baked goods, while comparable sales of apparel and household goods were up nearly 5%.
follows strong first-half results from M&S in November, when the retailer raised its full-year profit forecast to £640 million from £575m.
Richard Lim, chief executive of Retail Economics, said: “These are fantastic results in a challenging market.
“Shoppers have fallen in love with M&S again with a revamped offer based on a leading omnichannel service.
“This has been a hugely impressive turnaround and there is great momentum in this area of the business. until 2024.
“While the outlook remains challenging, it is well positioned to navigate these choppy waters.”
M&S shares fell as much as 6% on Thursday after it warned of price pressure from wage inflation, business rates and geopolitical risks such as disruption to shipping routes in the Red Sea.
The company later recouped some of those losses and ended the day down just under 2.8%.
Meanwhile, international sales disappointed investors after falling 6.8% to £288 million in the period.
M&S's share price has more than doubled over the past year, helping it return to the blue index UK chips, four years after it was demoted from the FTSE 100 index.
The retailer's revival has been linked to a costly investment program led by Mr Machin and overseen by chairman Archie Norman, which has improved product quality retailer, physical stores and online presence.
In an announcement on Thursday, the company said its so-called renewal stores – those that have been refurbished – performed “particularly well” at Christmas.
< p>They are designed to “offer the efficiency of a supermarket and the soul of a fresh market”, with market-style displays displaying more fresh fruit, vegetables and baked goods, as well as fill-your-own sections, wine tastings and ceramic pizza ovens .
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