M&S: Strong Food Sales Help to Stem Overall Drop in Full-Year Profits

20 May 2014 --- UK retailer Marks & Spencer has reported better-than-expected profits boosted by another strong performance from its food arm. The high-street retailer reported a 3.9% fall in full-year underlying pre-tax profit to £623m in the year to 29 March, which was ahead of the forecasted £615m.

Like-for-like food sales increased by 1.7% while the retailer’s clothing and homeware arm saw a drop of 1.4% in comparison. According to the retailer, food sales were boosted by “supply chain efficiencies and effective management of promotional activity”.

The retailer also noted that 20% of its food products would be new this year and it has increased the number of stores stocking the full range to 110.

M&S also noted that its food business has now delivered 18 consecutive quarters of like-for-like growth and sales of its Simply M&S range have also continued to grow, accounting for 11% of total sales. 

“Our food business had a very strong year, consistently outperforming the market,” confirmed chief executive Marc Bolland, who joined the company from Morrisons two years ago. “Three years ago, we recognised the scale of investment required to transform our business, investing to strengthen our foundations and improve our customer offer. We are making strong progress on this journey and are now focused on delivery.”