What: Marks and Spencer (M&S) has achieved consistent sales growth, attributed to a new store format and improved supply chain, making its latest turnaround efforts likely to succeed.

Why it is important: This transformation is significant because M&S has struggled for decades to achieve sustainable growth. The strategic changes in store locations and supply chain management, coupled with consistent sales growth, signal a robust and enduring recovery. This resurgence not only boosts investor confidence but also positions M&S competitively in the market against struggling rivals.

Marks and Spencer has demonstrated a remarkable turnaround, with 12 consecutive quarters of sales growth in both its food and clothing divisions. Under the leadership of CEO Stuart Machin and Chairman Archie Norman, the retailer has closed unprofitable stores, opened new formats in strategic locations, and streamlined its supply chain. These efforts have resulted in a 58% increase in annual pre-tax profits to £716 million and an 80% rise in share prices over the past year. Despite challenges such as IT upgrades and enhancing its digital presence, M&S's improved financial health and strategic initiatives suggest that this turnaround will be sustainable.

Why this M&S turnaround should finally stick