What: M&S unveiled growing food and clothing sales as it plans to modernize the business seems to be paying off.

Why it is important: The retailer’s profits beat expectations despite inflation.

M&S recorded a successful quarter with food sales jumping 8.7% to GBP 7.22 billion and clothing sales growing by 11.5% to GBP 3.72 billion.

The retailer’s pre-tax profit surged 23% on a statutory basis while group sales jumped 9.9% to GBP 11.98 billion. Like-for-like sales in clothing and home increased 11.2% and online and in store sales also reported increases. However, its Ocado Retail joint venture recorded a GBP 29.5 million loss for the business.

M&S has plans to protect its magic, exceptional product, trusted brand, and strong values while also modernizing the rest of the business.

In the food sector, M&S is focusing on value, reducing the number of promotions, and offering cheaper opening price points.

The company is also reducing the number of options in clothing and investing in categories that drive style perceptions.

The retailer is focusing on digital, with a goal to increase online sales and achieve a better margin for online.

M&S also has plans to invest in new stores with 20 “bigger and better stores” opening by 2024;

The company has set a target of 1% growth in market share in both clothing and food, and aims to bring its operating margin up to 4% in food and 10% in clothing over the next five years.

M&S clothing and food sales jump as profits edge up 

How M&S plans on protecting its magic while mondernizing its business